Money Follows the Person

Money Follows the Person Demonstration Programs were created by federal statute in 2005 to provide assistance to states to help Medicaid enrollees receive care in home and community-based settings rather than in institutions. The program was designed to eliminate barriers in state laws, Medicaid plans and budgets that prevent flexible use of Medicaid funds for Medicaid eligible individuals to receive long-term care in the settings of their choice. Currently, 29 states, including Arkansas, have implemented MFP Demonstration Programs.

Section 2403 of the PPACA extends the MFP Demonstration Program through Sept. 30, 2016 and appropriates an additional $450 million annually between 2012 and 2016, totaling an additional $2.25 billion.

Arkansas Implementation

Arkansas's Medicaid program already operates an MFP Demonstration Program. The state was awarded a $20.9 million five-year grant in 2007 and has committed to transferring 305 people from institutional care to home or community-based settings. Because the state already has a program, it is ineligible to receive the new MFP grant funding, which is designed to foster the creation of MFP programs in states that don't have them.

However, Arkansas will be eligible to receive enhanced Medicaid payments for each individual transferred from institutional care during a one-year period, an MFP benefit made available under PPACA.