CMS announces $2.25 billion for rebalancing long-term care pilot

The federal Centers for Medicare & Medicaid Services has announced the availability of $2.25 billion in grants to states that join its Money Follows the Person (MFP) Demonstration project (Source: "CMS Announces $2.25 Billion in Grants to Extend Money Follows the Person Rebalancing Demonstration,” Health and Human Services release, July 26, 2010).

In his testimony to the Joint Legislative Budget Planning and Management Commission earlier this month, HPIO Interim Director Greg Moody explained that 72 percent of Ohio’s Medicaid long-term care expenditures are for more costly institutional care and only 28 percent are for lower-cost home or community care. As a result, Ohio’s spending per Medicaid/Medicare “dual” eligible is $22,021, compared to a national average of $14,972.

Under the MFP demonstration, states will receive an enhanced Federal Medical Assistance Percentage (FMAP) for a one-year period for each individual they transition from an institution to a qualified home and community-based program, according to the release. States will be able to transition multiple population groups including the elderly, people with intellectual, developmental or physical disabilities, mental illness or those who have a dual diagnosis.

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