A Description of Board and Care Facilities, Operators, and Residents. 6.2 Financial Support


Residents use varying sources of funds to pay for board and care and the services they receive, with many residents having more than one payment source (Exhibit 6-3). Because SSI is widely thought to be one of the primary sources of income for residents in board and care facilities, it is surprising that less than one-third of the residents were SSI recipients. The fact that we limited study participation to facilities that served a mixed or primarily elderly population can perhaps partially explain this. SSI is an assistance program targeted to the disabled population. This younger disabled population would be more likely to reside in facilities that primarily serve mentally retarded/developmentally disabled or mentally ill residents rather than those included in this study. Because more than three-fourths of the residents were over 65, it is not surprising that a vast majority (90 percent) of the residents reported receiving Social Security income and being Medicare beneficiaries.

More residents in licensed extensively regulated facilities were Medicare beneficiaries and Social Security recipients than were residents of licensed homes in States with more limited regulations. Many of these differences are attributable to the fact that, on average, residents of licensed extensively regulated Stats were almost 6 years older than their counterparts in States with limited regulation.

Consistent with this finding is the fact that licensed home residents were more likely to have Medicaid coverage and to be SSI recipients than were those in unlicensed homes, regardless of size.

EXHIBIT 6-3. Resident Financial Support
Sources of Financial Support Total Population Licensed Homes Licensure Status
Extensively Regulated States States with Limited Regulation Licensed Homes Unlicensed Homes
  %     SE     %     SE     %     SE     pa     %     SE     %     SE     pb  
Medicare beneficiary 85 1.3 87 1.1 81 2.4 c 85 1.4 84 2.9  
Social Security recipient 86 0.9 88 0.8 83 1.6 c 86 1.0 87 2.7  
Medicaid beneficiary 34 4.7 34 5.6 33 8.8   37 4.9 8 2.4 c
SSI recipient 31 4.1 31 5.0 30 7.2   33 4.1 8 2.2 d
VA pension recipient 9 1.1 9 1.4 9 1.7   8 1.0 16 4.3 C
  1. Significance level of regulatory environment effect among licensed homes.
  2. Significance level of licensure effect.
  3. .01 < p < .05.
  4. p < .0.1.


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