For the last eight years, states have been helping Medicaid beneficiaries move from institutions to the community through the Money Follows the Person (MFP) demonstration. MFP is aimed at reducing the Medicaid program’s institutional bias, which exists because nursing facility services must be covered while most home and community-based services (HCBS) are provided at state option. The program seeks to help beneficiaries overcome barriers to returning to community living, which arise because housing and other community supports often are lost after residing in an institution for a period of time. The first MFP programs began transitioning beneficiaries to the community in 2008, and 44 states are participating in MFP as of 2015. Federal funding for the program expires in September 2016, although states have until 2020 to spend their grants.
