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Money Follows the Person

Authorized in Section 6071 of the Deficit Reduction Act of 2005 (P.L. 109-171), as amended by Section 2403 of Patient Protection and Affordable Care Act (P.L. 111-148), the Medicaid Extenders Act of 2019 (P.L. 116-3), the Medicaid Services Investment and Accountability Act of 2019 (P.L. 116-16), the Sustaining Excellence in Medicaid Act of 2019 (P.L 116-39), and Sec 205: Further Consolidated Appropriations Act, 2020 (P.L. 116-94), the Money Follows the Person (MFP) demonstration supports state efforts for rebalancing their long-term services and supports system so that individuals have a choice of where they live and receive services.

Over 75,151 people with chronic conditions and disabilities transitioned from institutions back into the community through MFP programs as of December 2016. For the period January 1, 2017 through December 31, 2018, grantees self-reported having transitioned an additional 18,640 individuals for a total of 93,791.

MFP Program Goals

  • Increase the use of home and community-based services (HCBS) and reduce the use of institutionally-based services
  • Eliminate barriers in state law, state Medicaid plans, and state budgets that restrict the use of Medicaid funds to enable Medicaid-eligible individuals to receive support for appropriate and necessary long-term services and supports in the settings of their choice
  • Strengthen the ability of Medicaid programs to provide HCBS to people who choose to transition out of institutions
  • Put procedures in place to provide quality assurance and improve HCBS

MFP Grantee Information

Grant awards are available to states for the fiscal year they receive the award, and four additional fiscal years after. There are currently forty-three states and the District of Columbia participating in the demonstration.

Report to Congress

The authorizing legislation required that the Secretary of the Department of Health and Human Services provide for a national evaluation of the MFP demonstration and submit a final report to the president and Congress that presents the findings and conclusions of this evaluation.

The CMS Money Follows the Person Tribal Initiative

In 2013, CMS awarded funding for the MFP Tribal Initiative (TI) to five state grantees:  Minnesota, Oklahoma, North Dakota, Washington and Wisconsin. The MFP TI offers existing MFP state grantees and tribal partners the resources to build sustainable community-based long- term services and supports (CB-LTSS) specifically for Indian country. CB-LTSS are those types of assistance with daily activities that generally help older adults and people with disabilities to remain in their homes. This initiative will make available these services to people with functional limitations or cognitive impairments that need assistance with activities of daily living such as bathing, dressing, eating, or other basic activities when they have been in an institutional setting for over 90 days. These services will help them move back into the community. In addition, MFP TI may be used to advance the development of an infrastructure required to implement CB-LTSS for American Indians and Alaska Natives (AI/AN) using a single or a variety of applicable Medicaid authorities. Funding is intended to support the planning and development of:

  • An in-state Medicaid CB-LTSS program (as an alternative to institutional care) tailored for AI/ANs who are presently receiving services in an institution
  • A service delivery structure that includes a set of administrative functions delegated by the state Medicaid agency to tribes or tribal organizations (T/TOs), such as enabling tribe(s) to design an effective program or package of Medicaid CB LTSS and operating day to day functions pertaining to the LTSS program(s)

MFP TI may be used to cover costs necessary to plan and implement activities consistent with the objectives of this funding and within federal grant regulations. The funds are subject to all the terms and conditions of the MFP program.  

The MFP TI funding announcement contains more detailed information about the MFP TI initiative. While the solicitation is now closed, it is available for review (PDF, 841 KB) .

MFP Evaluation Information and Reports