This chart, created with information from the United States Census Bureau, shows that minority groups gaining an increased split of the demographic makeup within the state of Wisconsin.
Notably, the population of white residents in the state dropped 2.3% from 2000 to 2021. On the other hand, the percentage of Black residents increased by 1.1%. The percentage of Asian Americans nearly doubled, going from 1.7% of the state’s population to 3.2%. Similarly, the percentage of Hispanic and Latino residents more than doubled, shooting up to 7.5% from 3.6%.
Wisconsin’s demographic continues to grow older, with concerns raising over how the state will support its aging populations.
The elderly population in the state, those 65 years and older, is projected to nearly double from 2010 to 2040, according to a study by the Wisconsin Department of Administration’s Demographic Services Center.
Key concerns include how to properly care for an increasingly older population, with their being tensions between long-term care facilities and Wisconsin’s Department of Health Services, which supplies much of their funding.
Additionally, an aging population means the working-age population is projected to shrink, with experts split on how to alleviate those pressures.
Population aging is likely to put large amounts of stress on long-term care facilities, LeadingAge Wisconsin CEO John Sauer said.
Sauer said as the state ages, more long-term care facilities will be needed. However, those services are becoming sparser as some facilities close due to budgetary issues, according to Sauer.
Two-thirds of the patients that long-term care facilities manage are funded by Medicaid, and the DHS is paying less than half of nursing homes what it costs to care for those patients, Sauer said.
“When the state goes out and contracts for bridge replacement, they don’t pay the contractor 65 or 75 cents on the dollar for the costs,” Sauer said. “And that’s what we need to move to for our reimbursement system for nursing homes, so that we have a payment system that better approximates that cost of care.”
Since early 2020, 2,666 beds, or spaces in long-term care facilities, have been closed, according to Sauer. Sauer said the number of beds closed in that timeframe is equivalent to 41 full nursing homes.
The reasons behind the closures are a mixture between facilities closing down and others decreasing their number of available beds, Sauer said.
Sauer said the problem is not the actual number of beds themselves, but the number of staff they have to man those beds. Long-term care facilities in Wisconsin are at less than 70% bed occupancy, but are facing a 28% vacancy rate in caregiver positions, according to Sauer.
“We have plenty of available nursing home beds,” Sauer said. “The struggle we have is we can’t staff those empty beds. The workforce crisis is fueled by a reimbursement system that pays less than cost. We must increase our investment in the long-term care system.”
The DHS administers two other programs through Wisconsin’s Division of Medicaid Services meant to help provide long-term care: the Program of All-Inclusive Care for the Elderly and the Family Care Partnership Program, according to DHS Communications Specialist Jennifer Miller. These programs aim to assist in care as an alternative to nursing homes and mixes health and long-term support services in home and community setting, respectively, according to Miller.
Wisconsin’s latest state budget included a 5% raise in Medicaid funding, specifically targeting increase for wages paid to direct care providers serving Medicaid long-term care participants, according to DHS Communications Specialist Elizabeth Goodsitt.
The state is attempting to alleviate Medicaid funding concerns through multiple avenues, with the DHS announcing that they will start to cover 91% of Medicaid costs for nursing homes, up from the old rate of 77%.
The additional funding will be used as a tool to attract healthcare professionals and alleviate staffing issues, according to Sauer.
Sauer is cautiously optimistic about this change. He said the DHS determines what counts as allowable expenses, and therefore what they will cover, so some legitimate costs of operation for nursing homes may still not get covered.
Sauer does hope the new system is able to assist with some of the struggles long-term care facitilies are facing, as he believes nursing homes are incredibly influental for the future well-being of Wisconsin.
“We need to prepare right now, to have a viable and sustainable long-term care system that would include nursing homes,” Sauer said. “The demand is coming our way.”
As elderly citizens continue to take up a larger portion of the state’s demographic that leaves fewer and fewer percentage of the state’s population to be of working age. Job opening are expected to drastically increase as the older generations retire, but the the state’s workforce is projected to stay virtually the same, according to the Milwaukee Journal Sentinel.
This problem is notably worse within the healthcare field, where instances of resignation and increasing demand for care are combining to create vast worker shortages, according to Wisconsin Hosptial Association Media Specialist Erin Collins. These trends are referred to as the Great Resignation and the Silver Tsunami, and have led to the highest vacancy rates for registered nurses since 2005, according to Collins.
Additionally, Wisconsin’s birth rate is facing a steady decline, meaning that these problems are likely around for the long term, according to a study by the Wisconsin Policy forum. The study suggests that when lawmakers consider policies on immigration, taxes and family leave, they should do so with the context of needing more children to build the students, workers and citizens of tomorrow.
Many experts are suggesting using immigration to fill population gaps and meet labor demand, according to the Milwuakee Journal Sentinel.
Some experts suggest filling employment vacancies with H-1B visas, which allow companies to bring in college-educated workers to for specailized fields, according to the Milwaukee Journal Sentinel. Those experts say such immigration could help local economies and give them an entrepreneurial boost, according to the Milwaukee Journal Sentinel.
Other experts believe such immigration programs could drive down wages and Wisconsin should focus on existing workers, according to the Milwakuee Jouranal Sentinel.
As we move towards a more elderly state, lawmakers, employers, long-term care facilites and workers must take into account the changing demographics. The entire state of Wisconsin has to build to a better future together.
