The Money Follows the Person (MFP) demonstration, first authorized by the Deficit Reduction Act of 2005 (DRA, P.L. 109-171), has helped states transition more than 100,000 beneficiaries from institutions back to the community. MFP funds may be used to transition beneficiaries into specific settings defined in the DRA, a much more limited definition than permitted for Medicaid home-and community-based services (HCBS) more generally.
In the Consolidated Appropriations Act, 2021 (CAA, P.L. 116-260), Congress directed MACPAC to identify settings available to MFP participants and settings that qualify for HCBS payment under the settings rule. If deemed appropriate, the Commission could recommend policies to align MFP residence criteria with the HCBS settings rule. This presentation provided the results of MACPAC’s work examining this issue, which included reviewing data on transitions, a survey of MFP program directors, and stakeholder interviews. While the survey demonstrated support among program directors for changing the criteria, viewpoints in stakeholder interviews were mixed. The presentation closed with a discussion of the policy options the Commission can consider as it deliberates whether to make recommendations in the mandated report.