Implementation of the American Rescue Plan Act: Additional Support for Medicaid HCBS During the COVID-19 Emergency
Article Publication Date
Summary
The Medicaid and CHIP Payment Access Commission (MACPAC) has released a report providing an overview of the impact of the American Rescue Plan Act of 2021 (ARPA) on Medicaid home and community-based services (HCBS). Through a temporary increase in the federal medical assistance percentage (FMAP), ARPA provided state Medicaid programs with the largest infusion of one-time federal funding for HCBS in recent history. This funding was intended to support states in providing Medicaid HCBS during the COVID-19 public health emergency by reinvesting it in their HCBS programs.
MACPAC monitored state efforts to spend the federal funds and worked to understand state experiences with implementation. Due to tight timeframes, limited staff bandwidth to take on new responsibilities, and other constraints, many states had to modify their original ARPA spending plans. States struggled to spend the funding in the amount of time allotted. CMS approved multiple extensions, some of which are ongoing. States also faced challenges trying to evaluate their investments in real time, which may have affected their ability to justify continuing certain activities following the expiration of federal funding.
MACPAC monitored state efforts to spend the federal funds and worked to understand state experiences with implementation. Due to tight timeframes, limited staff bandwidth to take on new responsibilities, and other constraints, many states had to modify their original ARPA spending plans. States struggled to spend the funding in the amount of time allotted. CMS approved multiple extensions, some of which are ongoing. States also faced challenges trying to evaluate their investments in real time, which may have affected their ability to justify continuing certain activities following the expiration of federal funding.