The Value of Daily Money Management: An Analysis of Outcomes and Costs

Abstract

For vulnerable and frail older adults, management of daily financial obligations can become an overwhelming burden spiraling into at-risk situations. Social service agencies have developed community-based Daily Money Management programs to assist these adults in protecting their financial security. Through this study the authors present the first economic estimates of the costs of Daily Money Management programs which, along with case management programs, save $60,000 per individual when compared with the cost of nursing home placement, making them highly cost effective. Most importantly, individuals are able to remain in their homes. The authors address the current gap between cost-effective community-based practice and public policy support.

KEYWORDS:

• Daily money management
• outcomes and costs
• elder abuse
• frail older adult
• case management
• crisis categories
• community based services

Notes

Note. *Percent of non-missing cases.

Note. *Total cases with a particular crisis, non-missing cases only.

1. U.S. Bureau of Labor Statistics http://www.bls.gov/oes/current/oes311011.htm

2. U.S. Bureau of Labor Statistics http://www.bls.gov/pPI/

3. Average annual DMM agency costs are $240 per month × 12 = $2880.

4. According to Lynn Saberski, Director of PSA for NYC Human Resources Administration, the annual cost per PSA case in NYC in 2008 was $3,968. The Financial Management Unit (FMU) cost extraction is $744 per case per year. However the FMU unit only provides representative payee services. Any other financial issues or problems a client has such as debt, loss of public benefits or eviction are handled by a caseworker. Thus to get a true picture of the cost to PSA of dealing with all financial and case management issues we use the total cost amount of $3,968 per client.

5. OLMSTEAD V. L. C., 527 U.S. 581. 1999. 138 F.3d 893.

6. 42 USC Section 1396 n (d)(4); 42 CFR 440.181.