Money Follows the Person

The U.S. Department of Health and Human Services, through CMS, awarded approximately $25 million in planning grants to five new states and territories to expand access to home and community-based services through Medicaid’s Money Follows the Person (MFP) demonstration program. With these awards, 41 states and territories across the country will now participate in MFP. Awards of up to $5 million have been granted to Illinois, Kansas, and New Hampshire, as well as for American Samoa and Puerto Rico. This is the first time MFP grants have been made available to territories. These awards will support the early planning phase for their MFP programs.

On Monday, August 22, 2022 CMS released the Money Follows the Person (MFP): Updated State Transitions annual report for calendar years 2017 to 2020. The MFP demonstration, established by Congress through the Deficit Reduction Act of 2005, enables state Medicaid programs to help Medicaid beneficiaries who live in institutions transition into the community, and gives people with disabilities and older adults more choice in deciding where to live and to receive long-term services and supports. From the time transitions began in 2008 to the end of 2020, states had transitioned 107,128 people to community living through MFP. The brief shows how MFP transitions varied by state and target population over time.

CMS has announced it will offer more than $110 million to expand access to home and community-based services (HCBS) through Medicaid’s Money Follows the Person (MFP) program. The new Notice of Funding Opportunity (NOFO) makes individual awards of up to $5 million available for more than 20 states and territories not currently participating in MFP. These funds will support initial planning and implementation to get the state/territory programs off the ground, which would ensure more people with Medicaid can receive high-quality, cost-effective, person-centered services in a setting they choose.

CMS has released a new report on community transitions that occurred under the Money Follows the Person (MFP) program from 2008 to the end of 2019. The report states that during this time, states transitioned 101,540 people to community living through MFP. In the most recent year (2019), MFP grantee states transitioned a total of 4,173 individuals. The report includes additional information on transitions broken down by population and state.

The Community Living Policy Center (CLPC) released a brief describing how short-term extensions of the Money Follows the Person (MFP) program have curtailed state efforts in transitioning individuals out of institutions. The CLPC based their findings on CMS data on annual transitions in each state.

This report was released by the U.S. Senate Special Committee on Aging. The report notes that one in four Americans 65 and older falls each year, leading to lasting health and economic consequences. Falls are preventable and not necessarily a part of the normal aging process. The report also includes a list of recommendations from the committee.

The Home and Community Based Services (HCBS) Conference is hosted annually by ADvancing States (formerly known as NASUAD). This event highlights best practices from across the country in home and community-based services. The conference includes federal, state, and local policymakers as well as those who administer, manage, and deliver waiver and other HCBS programs. This link contains all of the slide presentations from the 2019 HCBS Conference.

The Centers for Medicaid & Medicare Services released a report that profiled the 10 states with the greatest change in Long-Term Services and Support (LTSS) system balancing. The report highlights characteristics of the 10 states and compares their change in LTSS system balancing with other states and provides a national overview on LTSS system balancing. State profiles consist of characteristics and strategies states utilized in their progress towards rebalancing their LTSS systems.

This report looks at how states with strong MFP programs compare to states without or with limited MFP programs. Findings show that states with more robust MFP programs reduced utilization of institutional LTSS at a higher rate than other states. In addition, these states also rebalanced their LTSS systems more efficiently compared with other states.

While faced with new challenges, reduced budgets, and growing populations requiring more services, states are stronger than ever, and the work they do is more effective than ever in reaching individuals and addressing their needs. The National Home and Community Based Services (HCBS) Conference 2018 highlights these achievements, allowing states to share best practices, present unique partnerships, and recognize the work of their peers.