My Policy Hub

Improving health is our policy

  • Dashboard
  • Impact Insights
  • Issues
  • ACA Now
  • Search
  • Contact
  • Dashboard
  • Impact Insights
  • Issues
  • ACA Now
  • Search
  • Contact

ACA Now

2403 - Money Follows the Person Rebalancing Demonstration

 
Implementation Status 
Statutory Text 

Summary

Beginning April 23, 2010, authorizes the extension of the current Money Follows the Person (MFP) demonstration through FY 2016.  Relative to an individual’s qualification under the demonstration, decreases the institutional residency period requirements (to minimum of 90 consecutive days).

#Demonstration Programs, #Long-Term Care

Implementation Status

 
Summary 
Statutory Text 

HHS issued guidance in June 2010 regarding the 5-year extension of the MFP demonstration program and again in June 2011 (see the guidance that was issued in conjunction with explaining a broader set of coverage and service design opportunities).  Later that fall, in September 2011, CMS issued a notice regarding the extension of the program.  In June 2012, a GAO report examined this topic, among other related Medicaid HCBS options.  CMS continues to issue funds pursuant to this provision (e.g., see one of such announcements here), including awards made in conjunction with the ADRC program authorized under section 2405 of the ACA (e.g., see here).  For details regarding the current status of the program, refer to CMS’ MFP homepage.

2013

On January 22, 2013, CMS issued a Notice of Funding Opportunity regarding the MFP tribal initiative. The deadline to apply was March 22, 2013.

In a related event, on October 22, 2013, CMS issued an informational bulletin announcing the availability of a new resource regarding Medicaid managed long-term services and supports (MLTSS).   Specifically, the guidance clarifies the application of existing External Quality Review (EQR) protocols to MLTSS.

In late October, Mathematica Policy Research (MPR) issued an annual formal evaluation under contract with CMS on the MFP demonstration for CY 2012.

On April 18, CMS relayed recently-announced MFP Tribal Initiative grantees in five states, namely – Minnesota; North Dakota; Oklahoma; Washington; and Wisconsin; details here.

2014

On May 19, CMS announced the availability of the 2012 Medicaid Expenditures for Long-Term Services and Supports Report (see here). Among other things, the report addresses various new Medicaid state plan authorities (Section 1915(i), Section 1915(j), Community First Choice, and Health Homes). On a related note, CMS, along with ACL and VHA, also announced a FOA for No Wrong Door (NWD) planning grants to states (with the exception of the 8 states currently receiving Part A ADRC grants) to enhance individuals’ access to LTSS. Applications are due by July 15. Finally, on a related note, CMS announced the availability of new resources on chronic conditions among Medicare beneficiaries.

On Oct. 30, Mathematica issued an evaluation of the MFP Demonstration, reviewing total Medicare and Medicaid expenditures for those moving from institutional care to HCBS and concluding that MFP may help avoid acute care episodes (details).

On Apr. 23, CMS issued an evaluation of the MFP Rebalancing Demonstration grant program titled, “The Right Supports at the Right Time: How Money Follows the Person Programs Are Supporting Diverse Populations in the Community,” highlighting the work of six MFP state grantees – Illinois, Louisiana, Missouri, Nebraska, New Jersey, and Ohio – that have particularly excelled in their respective ability to serve a diverse Medicaid population with complex long-term service and support (LTSS) needs under the demonstration.

2017

In June 2017, CMS issued a report to Congress and the President on the MPF Rebalancing Demonstration. Under the MFP Rebalancing Demonstration program, 44 grantee states were awarded nearly $3.7 billion in grant funding and had transitioned a total of 63,337 Medicaid beneficiaries from long-term institutional care to community residences and home and community-based LTSS, as of 2016. The report shows that the costs of care to Medicaid for MFP participants transitioned through 2013 were reduced by $978 million during the first year after the transition to home and community-based LTSS.

2019

In August, President Trump signed into law a package of extenders to the Medicaid program incorporated in the Sustaining Excellence in Medicaid Act of 2019 (H.R. 3253). Highlights of Medicaid extenders package includes an extension of the Money Follows the Person (MFP) program through FY 2024. Our summary of the legislative package is available here.

 

Statutory Text

 
Implementation Status 
Summary 

SEC. 2403. MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION. (a) EXTENSION OF DEMONSTRATION.— (1) IN GENERAL.—Section 6071(h) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (A) in paragraph (1)(E), by striking ‘‘fiscal year 2011’’ and inserting ‘‘each of fiscal years 2011 through 2016’’; and (B) in paragraph (2), by striking ‘‘2011’’ and inserting ‘‘2016’’. (2) EVALUATION.—Paragraphs (2) and (3) of section 6071(g) of such Act is amended are each amended by striking ‘‘2011’’ and inserting ‘‘2016’’. (b) REDUCTION OF INSTITUTIONAL RESIDENCY PERIOD.— (1) IN GENERAL.—Section 6071(b)(2) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (A) in subparagraph (A)(i), by striking ‘‘, for a period of not less than 6 months or for such longer minimum period, not to exceed 2 years, as may be specified by the State’’ and inserting ‘‘for a period of not less than 90 consecutive days’’; and (B) by adding at the end the following: ‘‘Any days that an individual resides in an institution on the basis of having been admitted solely for purposes of receiving short-term rehabilitative services for a period for which payment for such services is limited under title XVIII shall not be taken into account for purposes of determining the 90-day period required under subparagraph (A)(i).’’. (2) EFFECTIVE DATE.—The amendments made by this subsection take effect 30 days after the date of enactment of this Act.

Browse ACA Titles

  • I-Quality, Affordable Health Care for all Americans
  • II-Role of Public Programs
  • III-Improving the Quality and Efficiency of Health Care
  • IV-Prevention of Chronic Disease and Improving Public Health
  • V-Health Care Workforce
  • VI-Transparency and Program Integrity
  • VII-Improving Access to Innovative Medical Therapies
  • VIII-Community Living Assistance Services and Supports (CLASS ACT)
  • IX-Revenue Provisions

ABOUT

  • Home
  • About Policy Hub
  • Free Newsletter
  • Team
  • Mission and Values
  • Contact Us

Contact Us

Impact Health Policy Partners 1301 K Street, NW, Suite 300W
Washington, D.C. 20005

(202) 309-0796
Contact Us

Copyright © 2025 ‐ Impact Health Policy Partners ‐ All Rights Reserved ‐ Privacy Policy ‐ Terms and Conditions ‐ Log in