Different options can be used. In Medicaid managed care, Arizona pays plans a blended rate that incorporates nursing home and community based costs but gradually tilts to a greater percentage of community-based costs. In Minnesota, the state pays plans for Medicaid beneficiaries who live in the community at rates based on community costs but requires plans to cover the first six months of nursing home costs. In addition, plans receive a bonus for residents who move from nursing homes back into the community. A 2001 AARP Public Policy Institute study, Capitated Payment of Medicaid Long-Term Care for Older Americans: An analysis of Current Methods, provides detailed descriptions of how both capitation models operated when the study was released.