Intermediate Care Facilities for Persons with Mental Retardation

Are Not the Cause of Medicaid Increases

And Should be Preserved for our Neediest Citizens

Intermediate Care Facilities for Persons with Mental Retardation (ICFs/MR) are the least restrictive setting for most people with severe and profound mental retardation, multiple disabilities, extreme functional limitations, chronic medical conditions and/or behavioral challenges. Studies have shown that these lifeline services are provided cost effectively in facility settings due to the extensive and specialized needs of the residents[1]. Since 1995, the number of ICF/MR residents nationwide has declined as higher functioning people have moved, leaving behind the most vulnerable people who are the most expensive to care for in ICFs/MR. 

 From 1995 – 2003, while Medicaid costs increased 73%, spending for ICFs/MR increased by only 24%.

 From 1995 – 2003, Medicaid costs increased by $116.3 billion, a rise of 73%. In contrast, spending for ICFs/MR increased by $2.25 billion, a rise of only 24%. In short, the ICFs/MR program is not the cause of rising Medicaid costs. It is a tiny and falling percentage of all Medicaid funding and a good investment for both the federal government and the states to care for their most needy citizens.

Figure 1: Expenditures

Expenditures ($ in billions)[2]

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