First authorized by the Deficit Reduction Act of 2005 (DRA, P.L. 109-171), the Money Follows the Person (MFP) demonstration program has helped 44 states and the District of Columbia transition over 100,000 Medicaid beneficiaries from institutional settings back to the community. Community residences that MFP participants transition into must meet certain requirements initially defined in the DRA. These requirements differ from those in the home- and community-based services (HCBS) settings rule, published in 2014, which established new requirements HCBS settings must meet by March 17, 2023.
MFP was most recently extended in the Consolidated Appropriations Act, 2021 (CAA, P.L. 116-260). In the CAA, Congress directed MACPAC to conduct a study to identify the settings that are available to MFP participants and the settings that qualify for HCBS payment under the settings rule. This presentation provided background on MFP and the HCBS settings rule, and described the work planned to complete this study.
