The Money Follows the Person (MFP) demonstration has provided participating states with flexibility and enhanced funding to support transitioning over 100,000 Medicaid beneficiaries from institutional settings back to the community. MFP participants must be transitioned into specific settings, using a much narrower definition than permitted by the home- and community-based services (HCBS) settings rule. The Consolidated Appropriations Act, 2021 (CAA, P.L. 116-260) directed MACPAC to identify settings that are available to MFP participants and the settings that qualify for HCBS payment under the settings rule. Congress also requested the Commission examine the merits of aligning MFP residence criteria with the HCBS settings rule.
This presentation outlined two policy options for the Commission’s consideration as it prepares the mandated report. It first describes the rationale for maintaining the existing MFP residence criteria. It then provides a rationale for aligning the MFP criteria with the HCBS settings rule. The Commission plans to publish the final report as part of its March 2021 report to Congress.
