medicaidkaiser commissiononISSUEPAPERandtheuninsured1330

GMoney Follows the Person: A 2010 Snapshot EXECUTIVE SUMMARY With the passage of health reform, the Money Follows the Person (MFP) demonstration grant program was extended five years through 2016 giving states further options to transition Medicaid beneficiaries living in institutions back to the community. Enacted into law in 2006 as part of the Deficit Reduction Act (DRA), the MFP demonstration provides states with enhanced federal matching funds for twelve months for each Medicaid beneficiary transitioned from an institutional setting to a community-based setting. Twenty-nine states and DC are currently participating in this demonstration program and more states plan to apply for MFP grants in the coming year. In July 2010, the Kaiser Commission on Medicaid and the Uninsured (KCMU) surveyed states about the current status of their MFP program including trends in enrollment, services and per capita spending. This year’s survey is a follow-up to the 2008 KCMU MFP survey and highlights findings based on responses from twenty-six states. Key Findings:  As of July 2010, nearly 9,000 individuals have been transitioned back to the community and another 4,000 transitions are currently in progress. Although states were slow to start enrolling participants, with just under four hundred people transitioned by the summer of 2008,1 significant progress has been made over the past two years. The majority of transitions to-date have been persons with physical disabilities and seniors. People with mental illness, developmental disabilities, and dual eligibles are less likely to be candidates for transition. States also reported low rates of reinstitutionalization – 322 individuals have returned to an institutional setting.  States identified a wide range of pre-transition services to target potential MFP participants and to successfully transfer individuals back to the community. The most commonly reported key services included expanded case management to coordinate transition, help with home modifications and one-time housing expenses such as security deposits or household furnishings, use of assistive technology, transportation, and expanded access to DME. States also reported partnerships with key community stakeholders as key features of their MFP programs. Examples of these partnerships include collaboration with independent living centers, AAAs, and state housing authorities.  The average monthly cost of transitioning a MFP participant to the community is roughly $5,600 per person. Amounts ranged from a high of $15,000 to a low of $2,000 per person per month and varied based upon the population target. When asked to compare the cost of serving Medicaid beneficiaries who reside in institutions with MFP participants, twenty-two states said MFP per capita costs were lower and only one state reported that the costs were comparable. When asked to compare MFP costs with costs for other Medicaid HCBS beneficiaries, responses were split. Eight states reported lower per capita costs, seven states said costs were comparable, and six states reported higher MFP per capita costs