CMS Announces New Federal Funding for 33 States to Support Transitioning Individuals from Nursing Homes to the Community
Last week, CMS announced the availability of up to $165 million in supplemental funding to states currently operating "Money Follows the Person" demonstration programs. The announcement asserted that the funding will help state Medicaid programs jump-start efforts to transition individuals with disabilities and older adults from institutions and nursing facilities to home and community-based settings of their choosing.
"The tragic devastation wrought by the COVID-19 pandemic on nursing home residents exposes Americas over-reliance on institutional, long-term care facilities," said Administrator Seema Verma. "Residential care will always be an essential part of the care continuum, but our goal must always be to give residents options that help keep our loved ones in their own homes and communities for as long as possible. Home and community-based care is not only frequently more cost effective, but is preferred by seniors and adults with disabilities seeking to maintain the dignity of independent living. This new federal investment will help states get our loved ones back home."
Today's action is supported by new data that shows the need for this supplemental funding opportunity to accelerate states' MFP activities. According to a new report released by CMS today, MFP state grantees transitioned 101,540 Medicaid beneficiaries from institutional care to home-based and community services (HCBS) since the program started in 2007. However, last year, only 4,173 Medicaid beneficiaries were transitioned under the MFP program – 3,700 below the 13-year average and a 46 percent decrease from 2018.
Thirty-three states (including the District of Columbia) that operate MFP-funded transition programs and plan to continue participating in MFP after this fiscal year are eligible to participate: Alabama, Arkansas, California, Colorado, Connecticut, District of Columbia, Georgia, Iowa, Idaho, Indiana, Kentucky, Louisiana, Maryland, Maine, Minnesota, Missouri, Montana, North Carolina, North Dakota, New Jersey, Nevada, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Washington, Wisconsin, and West Virginia.
About "Money Follows the Person"
Authorized in Section 6071 of the Deficit Reduction Act of 2005 (P.L. 109-171), as amended by Section 2403 of Patient Protection and Affordable Care Act (P.L. 111-148), the Medicaid Extenders Act of 2019 (P.L. 116-3), the Medicaid Services Investment and Accountability Act of 2019 (P.L. 116-16), the Sustaining Excellence in Medicaid Act of 2019 (P.L 116-39), and Sec 205: Further Consolidated Appropriations Act, 2020 (P.L. 116-94), the Money Follows the Person (MFP) demonstration supports state efforts for rebalancing their long-term services and supports system so that individuals have a choice of where they live and receive services.
Each state is eligible to receive up to $5 million in supplemental funding for planning and capacity building activities to accelerate long-term care system transformation design and implementation, and to expand HCBS capacity, such as:
In addition, states could use this funding opportunity to support HCBS planning and capacity-building activities in direct response to the COVID-19 public health emergency, such as to plan and implement the use of telehealth for nursing facility transition activities that would normally be conducted in-person, or to redesign service delivery models to reduce the risk of COVID-19 infection among MFP participants.
Supplemental budget requests under this funding opportunity will be accepted on a rolling basis through June 30, 2021. CMS will provide all eligible grantee states that currently operate a MFP-funded transition program with additional information on this funding opportunity.
For more information, please visit: medicaid.gov/medicaid/long-term-services-supports/money-follows-person/index.html
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