South Carolina is seeking part of a $1.75 billion federal grant to get more seniors out of nursing homes and back into their own homes or other community settings.

The federal government made the five-year grant available in July to every state on a competitive basis.

If the state gets the money, it could pay for almost 200 elderly or disabled persons to leave nursing homes by 2011.

South Carolina waited until just before the November deadline to apply. State health officials said they needed to be sure the grant was worth the effort.

“In this case, there was a question whether the grant would add much value to our existing long-term care services,” said Jeff Stensland, a spokesman for the state Department of Health and Human Services, which was authorized to apply as Medicaid administrator. “Ultimately, it was decided that (the grant) could be beneficial in enhancing choices for seniors in nursing facilities.”

Advocate groups lined up behind the application.

“We’re interested in helping people stay away from institutionalization as long as possible — that’s what we do — so we definitely were in support of it,” said Sharon Seago, director of the Central Midlands Area Agency on Aging, which covers Richland, Lexington, Newberry, Kershaw and Fairfield counties.

The federal Centers for Medicare and Medicaid Services said they are reviewing 38 applications. The grants will be awarded beginning in January.

About 154 of the 192 licensed nursing homes in South Carolina are under contract with HHS to provide care to Medicaid recipients, the department says.

According to the Medicare and Medicaid agency, states are eligible for up to a 50 percent increase in their federal-state reimbursement match rates. The money pays for the long-term care transitional costs that fall under the grant.

South Carolina’s reimbursement match would rise to 90 percent from 70 percent for a year after a senior is moved from a nursing home.

The funds could be used to cover costs ranging from home health care to home modifications, respite care or informal caregivers.

The grant is called “Money Follows the Person Rebalancing Demonstration.” The idea is to use the grant to show how a better balance between institutional care and home/community care can be more effective and better accepted by consumers.

In South Carolina, there are about 18,000 nursing home patients, officials said. So most of the money goes to institutional care, HHS said in its application.

“South Carolina services are very heavily weighted to nursing home care rather than community-based services,” said Gloria Prevost, executive director of Protection and Advocacy for People with Disabilities Inc. in Columbia. “While this grant, if funded, is a small step, it is significant.”

Pointing to a South Carolina Legislative Audit Council report that found nursing home care for Medicaid patients costs twice as much as care in community-based settings, AARP said it also supports the grant.

“We believe increasing funding for home- and community-based services is pragmatic, compassionate and crucial to a balanced, long-term care system,” said Teresa Arnold, legislative director for the lobbying group for seniors.

Reach Burris at (803) 771-8398.