HD12 - Funding Options for Low-Income Residents of Assisted Living Facilities


Executive Summary:
House Joint Resolution 580 (2011) directed JLARC staff to study third-party payments to assisted living facilities (ALFs) on behalf of individuals receiving the auxiliary grant (AG), Virginia’s supplement to the federal Supplemental Security Income (SSI) program. Additional funding may help improve the availability of assisted living for low-income Virginians, which has been declining over the last decade.

While third-party payments should be allowed, they would only benefit fewer than ten percent of AG recipients. In order to address concerns about retaining SSI eligibility and how ALFs will use the additional funds, third-party payments should be limited to covering the provision of goods and services other than food or shelter, and ALFs should be required to provide additional services beyond those specified by the AG program.

The options most likely to provide significant financial assistance to ALFs serving low-income individuals will require State funding. One option is to increase the AG rate. Due to a declining caseload, the AG rate could be increased a modest amount without increasing the FY 2012 AG appropriation. For more meaningful financial assistance, the State could increase the AG further by appropriating additional State funds.