Providers and recipients of home- and community-based services (HCBS) received good news at the end of 2020, as federal lawmakers approved legislation extending the Money Follows the Person (MFP) program for three full years, following multiple short-term renewals that provided patchy support. Here, we take a closer look at the benefits of MFP and the current renewal details.
The Uncertainty Ends
MFP, run through Medicaid, provides funds to states in order to support moving people out of institutions and into HCBS settings. Funds can be used toward employment, housing, and other services required by individuals with disabilities. According to the Centers for Medicare and Medicaid Services, MFP enabled over 101,000 people to leave institutional care between 2008 and 2019 and reside in their communities instead.
The MFP program officially expired in 2016, leading to a series of short-term extensions—eight in total—in order to keep the highly necessary program from disappearing entirely. Despite the extensions, however, the uncertainty around the program resulted in many states choosing to terminate services once their funding had run out.
Although advocates were hoping for a permanent legislative solution, the three year extension will still provide timely and essential support in the midst of the ongoing COVID-19 pandemic; particularly as individuals, caregivers, and behavioral health providers look to move more people out of institutions and nursing homes and into HCBS to reduce risk of infection.
Renewal Details
The renewal, passed in December 2020, will support the program as follows:
- A total of $450 million will be allotted annually to MFP through September 2023;
- All states will now be allowed to participate in the program;
- Individuals receiving care at an institution will qualify for transition to HCBS after only 60 days (shortened from the previous requirement of 90 days);
- States will be required to submit descriptions of their activities with the funds to improve accountability; and
- The Secretary of Health and Human Services will release a report highlighting best practices.
In addition, spousal impoverishment protections have been extended through 2023. These protections are in place for the partners of people receiving HCBS through Medicaid so they can afford to live independently within the community even after their spouses have moved out of institutional settings.