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Program / MFP
Money Follows the Person
A Medicaid rebalancing demonstration that pays states an enhanced federal match to move people out of institutions and into community living. VerisGov maps the structure and keeps the moving parts current.
Coverage Healthcare and Medicaid
At a glance
- Program
- Money Follows the Person Rebalancing Demonstration, a Medicaid long-term care rebalancing initiative.
- Administering agency
- Centers for Medicare and Medicaid Services (CMS), within HHS; operated by state Medicaid agencies.
- Statutory authority
- Section 6071 of the Deficit Reduction Act of 2005, later amended and extended by Section 2403 of the Affordable Care Act.
- Funding mechanism
- A competitive Medicaid demonstration grant to states. Award amounts are funded through an enhanced federal matching rate on qualifying home and community based services for transitioned individuals.
- Money flow
- Federal match flows to the state for qualifying expenditures during a defined post-transition period for each eligible beneficiary, then services continue under the state's standard Medicaid match.
- Who has a stake
- State Medicaid agencies, nursing facilities and institutions, home and community based services providers, managed long-term care plans, and Medicaid beneficiaries transitioning to community living.
What it is
Money Follows the Person is a Medicaid demonstration that helps states shift their long-term care systems away from institutional settings and toward home and community based services. The core idea is that Medicaid dollars should follow a person to the setting of their choice rather than being tied to a nursing facility or other institution. The Centers for Medicare and Medicaid Services administers it, and participating states operate it through their Medicaid programs.
MFP is a competitive Medicaid demonstration grant to states, not a standing formula program. A state that participates transitions eligible Medicaid beneficiaries from qualifying institutions into qualified community residences and, in return, draws an enhanced federal matching rate on certain home and community based services for a defined period after each transition. The demonstration is paired with state commitments to change underlying policies so that long-term care spending can flow to community settings on a durable basis.
Because MFP rides on the Medicaid financing structure, money reaches states as federal match on qualifying expenditures rather than as a fixed award. The demonstration distinguishes between qualified services a beneficiary would have received anyway, demonstration services, and supplemental services, with the enhanced match applying to the qualifying categories during the post-transition window.
Key facts
- Program Money Follows the Person Rebalancing Demonstration, a Medicaid long-term care rebalancing initiative.
- Administering agency Centers for Medicare and Medicaid Services (CMS), within HHS; operated by state Medicaid agencies.
- Statutory authority Section 6071 of the Deficit Reduction Act of 2005, later amended and extended by Section 2403 of the Affordable Care Act.
- Funding mechanism A competitive Medicaid demonstration grant to states. Award amounts are funded through an enhanced federal matching rate on qualifying home and community based services for transitioned individuals.
- Money flow Federal match flows to the state for qualifying expenditures during a defined post-transition period for each eligible beneficiary, then services continue under the state's standard Medicaid match.
- Who has a stake State Medicaid agencies, nursing facilities and institutions, home and community based services providers, managed long-term care plans, and Medicaid beneficiaries transitioning to community living.
What it funds
- Transition services that move a person from an institution into a qualified community residence
- Home and community based services such as personal care, attendant care, and supports for daily living
- Setup of a qualified community residence
- State infrastructure and rebalancing activities that redirect long-term care toward community settings
- Care coordination and case management supporting community transitions
Always current
What VerisGov keeps current
The facts above hold for years. These move, and they are where most of the work is. The engine tracks each one against its government source, so what you see is the live state, not a snapshot that quietly went out of date.
- Whether the demonstration is currently authorized and the current authorization or extension window
- Which states actively participate and their enhanced match terms
- Current eligibility parameters, including the qualifying institutional length of stay and qualified residence criteria
- Application, reporting, and supplemental services rules CMS has in effect
- Annual federal funding levels and any per-state allocation guidance
How VerisGov covers it
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Pinned to records published by
- Centers for Medicare and Medicaid Services (CMS)
- State Medicaid agencies
Answers
Frequently asked questions
Is Money Follows the Person a grant program?
Yes. MFP is a competitive Medicaid demonstration grant to states. Award amounts are sized through an enhanced federal matching rate on the qualifying home and community based services a state provides to people it transitions out of institutions, so the funding rides on Medicaid's matched financing while the award itself is a grant.
Who is eligible to be transitioned under MFP?
Eligibility centers on Medicaid beneficiaries who have lived in a qualifying institution for a defined minimum period and who move into a qualified community residence such as a home, apartment, or small group home. The exact institutional length and residence definitions are program parameters that can change over time.
What does the enhanced match pay for?
The enhanced federal match applies to qualifying home and community based services during a defined window after a person transitions. MFP distinguishes qualified, demonstration, and supplemental services, and the enhanced rate applies to the qualifying categories before the person continues under the state's standard Medicaid match.
How does VerisGov help with Money Follows the Person?
VerisGov maps the durable structure of MFP, its statutory basis, the CMS and state-agency roles, and how enhanced-match financing works, and keeps the volatile details current: whether the demonstration is presently authorized, which states participate, the eligibility parameters in effect, and the latest CMS guidance. Every fact is pinned to its source.
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