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May 26, 2021

Medicaid's Money Follows the Person Rebalancing
Demonstration Program

Overview
The Money Follows the Person (MFP) Rebalancing
Demonstration Program (42 U.S.C. 1396a note) authorizes
the Center for Medicare & Medicaid Services (CMS) to
award competitive grants to states to transition Medicaid
participants who reside in institutional settings that provide
long-term services and supports (LTSS), such as nursing
facilities, into community-based settings. MFP was
designed to achieve the following objectives:
 Rebalancing: Increase the use of HCBS rather than
institutional LTSS.
 Money follows the person: Eliminate barriers that
restrict the use of Medicaid funds enabling eligible
individuals to receive LTSS in the setting of their
choice.
 Continuity of service: Increase the state Medicaid
program's ability to provide Medicaid HCBS to
eligible individuals who choose to transition.
 Quality assurance and quality improvement: Ensure
procedures to provide quality assurance and continuous
quality improvement for Medicaid HCBS.
According to CMS, states have transitioned over 100,000
individuals to community living from 2008 to 2019. A total
of 43 states and the District of Columbia have participated
in MFP over the course of the program (Figure 1).
Figure I. Medicaid Money Follows the Person (MFP)
Demonstration States by Grant Award Year
FMI4

CT
DC
DE
MA
N-1
NJ
RI
VT

S me awarded SFP grnh i 201 2
S-e awarded VFPcran  :, 2011
s that rcded their MFP ant award
4 MFPprogra  instate
Source: R. Coughlin et al., Money Follows the Person Demonstration:
Overview of State Grantee Progress, Mathematica Policy Research,
January to December 2016, September 2017.

For more information, see CRS Report R43328, Medicaid
Coverage of Long-Term Services and Supports.
Relevant Legislation
The MFP program was first enacted in 2006 and has been
extended with additional mandatory funding over time.
   The Deficit Reduction Act of 2005 (DRA; P.L. 109-
171), Section 6071, established the MFP program and
appropriated a total of $1.75 billion in funding from
January 1, 2007, through September 30, 2011.
   The Patient Protection and Affordable Care Act
(ACA; P.L. 111-148, as amended), Section 2403,
amended the DRA to extend program funding for five
years (from October 1, 2011, through September 30,
2016); it appropriated an additional $2.25 billion ($450
million for each fiscal year). It reduced the minimum
stay requirements to be eligible from six months to 90
consecutive days in an inpatient facility.
   The Medicaid Extenders Act of 2019 (P.L. 116-3),
Section 2, amended the DRA to extend program
funding through September 31, 2019, after a lapse in
annual appropriations since October 1, 2016; however,
state grantees could expend any unspent FY2016
amounts through FY2020. It appropriated an additional
$112.0 million for FY2019, of which $500,000 was for
quality assurance, technical assistance, and oversight.
   The Medicaid Services Investment and
Accountability Act of 2019 (P.L. 116-16), Section 5,
amended the DRA to appropriate an additional $20.0
million for a total of $132.0 million for FY2019.
 The Sustaining Excellence in Medicaid Act of 2019
(P.L. 116-39), Section 4, amended the DRA to
appropriate an additional $122.5 million, for a total of
$254.5 million for FY2019.
 The Further Consolidated Appropriations Act, 2020
(P.L. 116-94), Division N, Section 205, amended the
DRA to appropriate an additional $176.0 million for
January 1, 2020, through May 22, 2020.
 The Coronavirus Aid, Relief, and Economic
Security Act (CARES; P.L. 116-136), Division A,
Section 3811, amended the DRA to extend program
funding through November 30, 2020; it appropriated an
additional $161.5 million for $337.5 million in total for
January 1, 2020, through September 30, 2020, and a
prorated amount based on FY2020 for October 1, 2020,
through November 30, 2020 (extended through
December 11 and 18, 2020, in P.L. 116-159 and in P.L.
116-215).

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