This bill mandates the Department of Human Services in Arkansas to apply for a home- and community-based services waiver specifically for the aging and elderly population. The legislation highlights the need for such a waiver by outlining the current inadequacies in the Arkansas Medicaid Program, which has not established a comprehensive strategy to support the growing number of elderly individuals requiring services. It emphasizes that while skilled nursing facilities play a role in care, there is a significant gap in home- and community-based services that prevents elderly Arkansans from aging in place before needing institutional care.

The bill also stipulates that the Department of Human Services must ensure that the average per capita expenditures for recipients of the home- and community-based services waiver do not exceed the average costs associated with institutional care. This requirement aligns with the cost neutrality principle outlined in the Social Security Act, ensuring that the financial implications of the waiver are sustainable and do not exceed the costs of traditional nursing home care.