Cost Neutrality -- Why Home Care is Cheaper
One of the most important arguments we have made is that it is cheaper for children to live at home than in hospitals or institutions. This is easily supported by the state of Illinois' own analysis of each child currently in the MFTD Waiver.
Illinois has always mandated that all children in the waiver program be cost-neutral, which means that the cost of the child through the MFTD Waiver must be less than the cost of institutionalization.
Illinois completes an individual cost neutrality assessment for all children in the waiver on a regular basis to ensure they remain cost-neutral. These documents are completed by the Division of Specialized Care for Children, who administers the waiver, and certified by the department of Healthcare and Family Services.
Thus, the state of Illinois has certified that these numbers are accurate and appropriate.
Here are several examples of individual cost-neutrality statements:
You can view the full analysis for several children. This analysis includes how each of these figures is derived for each child.
As can be seen, the institutional cost is significantly higher for each child. The state is kind enough to even do the math for us, listing how much the MFTD Waiver is saving by keeping each child at home.
For just the four children whose analyses are listed above, the state would have to pay an extra $123,822 a month, or $1,485,860 a year if they did not keep this kids at home through the MFTD Waiver.
We estimate that the state would have to spend at least $30,000 a month per child without the MFTD Waiver. That means the state would have to spend $15 million MORE per month, or spend $180 million MORE a year without the MFTD Waiver!