Senior Housing - What is the Elderly Waiver Program?
Many seniors are in need of services but do not have the funds to pay for alternative housing. The Elderly Waiver (EW) program provides a funding solution for eligible seniors in this situation. Absent this option, low-income seniors would reside at skilled care or board-and-care facilities with Medicaid funding in order to have access to the care they require.
The EW program is operated by the Minnesota Department of Human Services (DHS) under a federal waiver to Minnesota’s Medicaid State Plan. According to the most recent information available from the Minnesota Department of Human Services, over 24,300 seniors were served and a total of $256.2 million dollars spent on fee-for-service and managed care in fiscal year 2008. Approximately 20% of these seniors were Hennepin County residents.
Eligible seniors are those who are age 65 or older, are eligible for Medical Assistance and need nursing home level of care. The program covers an array of services such as adult day care, homemaker services and a personal care assistant. Additionally, seniors may utilize Elderly Waiver funds for community residential services in settings such as an assisted living facility.
On average, the cost of alternative housing and services is $4,882 per person, per month (MN DHS). Since Elderly Waivers only cover the cost of services, not housing, seniors remain responsible for a portion of their living costs.
From a developer’s standpoint, incorporating units for seniors who utilize Elderly Waivers can be an attractive option. A project with both private pay and Elderly Waiver residents may have a larger project scale, which will allow the developer to capture critical economies of scale that make the project viable. Further, the project may experience fewer turnovers as seniors who deplete their assets may continue to reside at the community with Elderly Waiver funds. Taking reimbursement rates and financial constraints into account, it is common that a project will have between 15% and 25% of residents on the Elderly Waiver program, even through demand is much greater.
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