Anchorage residents 60 and older can now ride the People Mover for free Wednesdays and Fridays, thanks to a change the Assembly made last month. However, the city faces several structural challenges to providing seniors with affordable public transportation.
Recent Anchorage Assembly discussions have highlighted senior transportation pressures, particularly around the municipally supported AnchorRIDES paratransit program, which provides door-to-door transportation for seniors and people with disabilities who are unable to use fixed-route bus service.
A lifeline for older adults
Riders rely on AnchorRIDES for medical appointments, grocery shopping, senior center meals and other daily needs that support aging in place. Each trip represents a scheduled ride that enables access to essential services that many riders could not otherwise reach.
Transit usage and rising demand
Municipal transportation data show that AnchorRIDES provided 163,292 completed trips in 2024, including 39,454 trips in the first quarter and 38,748 trips in the second quarter, reflecting sustained demand throughout the year.
Advocates say Anchorage's growing senior population, longer life expectancy, rising housing costs that push older residents farther from services, and limited alternatives for those who no longer drive are driving demand. Maintaining reliable service can become more challengingduring periods of workforce shortages and rising operational costs.
The cost of paratransit service
Providing curb-to-curb paratransit service is significantly more expensive than operating fixed-route buses. The average cost per AnchorRIDES passenger trip was approximately $31.74 in 2024, reflecting driver labor, fuel, vehicle maintenance, scheduling systems and dispatch operations, according to municipal transportation reports.
While riders pay modest fares, most costs are covered through municipal funding and grants. Officials have noted that Anchorage's relatively low population density and service model, requiring longer distances and individualized routing, contribute to higher per-trip costs than traditional bus service.
Despite the higher cost, supporters emphasize that paratransit plays a preventive role, helping older adults attend medical appointments and remain independent longer, which may reduce downstream public costs.
Recent assembly actions
During the most recent budget cycle, the Anchorage Assembly adopted a municipal budget that continued funding for AnchorRIDES at previously approved levels, allowing service to continue into the upcoming fiscal year.
In a separate 2026 budget change narrative, the Public Transportation Department reported that higher contract rates proposed by MV Transportation would increase per-trip and fixed costs for AnchorRIDES, identifying an estimated $4.4 million annual increase as the amount needed to maintain current paratransit service levels. That additional funding was not included in the adopted budget. Assembly members have described the current approach as a short-term measure rather than a long-term solution.
The Assembly also approved an expansion of fixed-route transit access for seniors in February. Members voted to add a second weekly free People Mover bus day for riders age 60 and older, allowing seniors to ride free on Wednesdays and Fridays. The change was recommended by the Public Transportation Advisory Board and supported with additional transit funding. https://bit.ly/4tA7pYO
Medicaid waiver transportation gaps
While municipal transit programs like AnchorRIDES serve an essential role, transportation gaps remain for seniors and adults with disabilities who rely on Medicaid home- and community-based services (HCBS) waivers.
HCBS waiver providers were designed to deliver care in lower-cost, community settings as an alternative to institutional placement. When adequately funded, these providers help individuals remain in their homes, reduce reliance on higher-cost services, and relieve pressure on more expensive systems like AnchorRIDES.
However, providers report that Medicaid waiver transportation rates often do not cover the true cost of providing rides, making it difficult for independent transportation companies and community-based providers to operate sustainably.
They cite rising labor costs, vehicle expenses, insurance and administrative requirements as major barriers, and also point to administrative hurdles, including prior authorization requirements for medical transportation. This can delay or prevent access to time-sensitive appointments. According to providers, recent Medicaid transportation rate increases have been minimal and have not kept pace with rising wages, fuel costs and vehicle maintenance.
The Guidehouse Long-Term Support Services study acknowledged that Alaska's Medicaid transportation system faces structural challenges, including non-billable costs unique to Alaska's geography. While the study published a benchmark rate reflecting approximately an 8 percent increase, it did not conduct a formal adequacy analysis or recommend implementation. Meanwhile, providers report ongoing instability, and individuals must often choose between medical appointments and community participation due to waiver transportation limitations. A separate medical transportation study (ground and air ambulance, taxi, paratransit services, and accommodation services) is expected in the coming months, but policy action remains pending.
What's next
Residents interested in senior services and community accessibility may wish to follow Anchorage Assembly meetings and Transportation Committee discussions, where funding and service levels are reviewed. The Public Transportation Advisory Board also provides updates and recommendations related to transit services. For the release of the additional Guidehouse study on medical transportation, individuals can subscribe to Senior and Disabilities Services e-alerts here: https://list.state.ak.us/mailman/listinfo/sds-e-news.
How Anchorage responds to the transportation needs of its seniors will shape not only today's services, but how future generations are able to age in place.
