States may have to show lenders that they can control their Medicaid long-term care (LTC) spending if they want to borrow money at a reasonable interest rate.
Analysts in the U.S. public finance unit at Moody’s Investors Service have shown how serious the LTC cost issue looks to lenders by devoting a nine-page report to an analysis of state Medicaid LTC spending.
The analysts created a table showing how much each state is spending on Medicaid LTC costs per resident, and set that side by side with a column showing how the size of the state’s age-65-and-older population might grow between now and 2024.
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The analysts found, for example, that Maine spent $794 per resident on Medicaid LTC costs in 2009, compared with a 50-state median of $335 per resident. The number of people in Maine who are over age 65 could grow about 36 percent by 2024, which is higher than the 50-state median of about 34 percent.
Today, Maine has an Aa2 credit rating from Moody’s.