93.791: Money Follows the Person Rebalancing Demonstration
Alternate Name: Money Follows the Person Demonstration
Aug. 9, 2022
Aug. 9, 2022
The Money Follows the Person (MFP) Rebalancing Demonstration, authorized by section 6071 of the Deficit Reduction Act of 2005 (P.L. 109-171), was designed to assist States to balance their long-term care systems and help Medicaid enrollees transition from institutions to the community. Congress initially authorized up to $1.75 billion in Federal funds through Fiscal Year (FFY) 2011. With the subsequent passage of the Patient Protection and Affordable Care Act (P.L. 111-148) in 2010, section 2403 extended the program through September 30, 2016. An additional $2.25 billion in Federal funds was appropriated through FFY 2016. Since then, section 2 of the Medicaid Extenders Act of 2019 (P.L. 116-3) added $112 million in Federal funds and changed the end date for the program from September 30, 2016 to September 30, 2021. Section 5 of the Medicaid Services Investment and Accountability Act of 2019 (P.L. 116-16) changed the additional funding appropriated through the Medicaid Extenders Act from $112 million to $132 million and section 4 of the Sustaining Excellence in Medicaid Act of 2019 (P.L 116-39) changed the additional funding appropriated through the Medicaid Services Investment and Accountability Act from $132 million to $254.5 million. Section 205 of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) and section 3811 of the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136) provided an additional $337.5 million. Section 2301 of the Continuing Appropriations Act, 2021 and Other Extensions Act (P.L. 116-159) added $66.4 million, section 1107 of the Further Continuing Appropriations Act, 2021, and other Extensions Act (P.L. 116-215) added $6.5 million. Section 204 of the Consolidated Appropriations Act, 2021 (P.L. 116-260) added $1.253 billion, extended and made changes to the program. Any funds remaining at the end of each fiscal year carry over to the next fiscal year, and can be used to make grant awards to current grantees through FY 2023. Any unused grant funds in 2023 can be used until 2027. No additional funding will be available after the final 2023 awards are made; however, grantees will submit documentation to identify projected costs and justify expenditures on an annual basis. Grantees can request to continue transitioning MFP participants until December 31, 2025 with services being provided and eligible for MFP-enhanced match through December 31, 2026. All claiming of services must be finalized by September 30, 2027. The MFP Demonstration supports State efforts to rebalance their long-term support system so that individuals have a choice of where they live and receive services. MFP program goals are (1) increase the use of home and community-based services (HCBS) and reduce the use of institutionally-based services; (2) eliminate barriers in State law, State Medicaid plans, and State budgets that restrict the use of Medicaid funds to let people get long-term care in the settings of their choice (3) strengthen the ability of Medicaid programs to provide HCBS to people who choose to transition out of institutions, and (4) put procedures in place to provide quality assurance and improvement of HCBS. The demonstration provides for enhanced Federal Medical Assistance Percentage (FMAP) for 12 months for qualified home and community-based services for each person transitioned from an institution to the community during the demonstration period. Eligibility for transition is dependent upon residence in a qualified institution for more than 60 consecutive days. The State must continue to provide community-based services after the 12-month period for as long as the person needs community services and is Medicaid eligible. Under the demonstration, the State must propose a system of Medicaid home and community-based care that will be sustained after the demonstration period and is deemed qualified by the Secretary. Specifically, the program must be conducted in conjunction with a qualified HCBS program which is a program that is in operation (or approved) in the State for such individuals in a manner that assures continuity of Medicaid coverage of services in the qualified HCBS program for eligible individuals. States may also propose to enhance the services they will provide during the demonstration period to achieve greater success with transition. States will be required to participate in a national qualitative and quantitative evaluation conducted by CMS. Data collected on a national level will help evaluate the core objectives of the statute.
Type of Assistance
A - Formula Grants (Apportionments)
Applicants for this Demonstration Grant must be any single State Medicaid Agency, State Mental Health Agency, or instrumentality of the State. Only one application can be submitted for a given State. By State we refer to the definition provided under 45 CFR 74.2 as any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State exclusive of local governments. By territory or possession, we mean Guam, the U. S. Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands.
As defined in section 6071(b)(2) of the DRA and amended by section 204 of the Consolidated Appropriations Act, the term “eligible individual” means an individual in the State who, immediately before beginning participation in the MFP demonstration project: (i) resides (and has resided, for a period of not less than 60 consecutive days in an inpatient facility; (ii) is receiving Medicaid benefits for inpatient services furnished by such inpatient facility; and (iii) with respect to whom a determination has been made that, but for the provision of home and community-based long- term care services, the individual would continue to require the level of care provided in an inpatient facility and, in any case in which the State applies a more stringent level of care standard as a result of implementing the State plan option permitted under section 1915 (i) of the Social Security Act, the individual must continue to require at least the level of care which had resulted in admission to the institution.