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NC Department of Health and Human Services Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

Money Follows the Person

The Money Follows the Person (MFP) Rebalancing Demonstration Program was designed to provide assistance to states to balance their long-term care systems and help Medicaid recipients transition from the long term care facility to community-based services.

Individuals who are eligible for CAP-MR/DD services are eligible for funding through the MFP Demonstration Project if they have resided in qualified facilities for at least 90 days. Qualified facilities include:  acute care facilities, state developmental centers, private intermediate care facilities for individuals with developmental disabilities, skilled nursing facilities and institutions for mental disorders for participants under 21 and over 65 who qualify for CAP-MR/DD services.

 The MFP Rebalancing Demonstration Program was authorized by Congress in the Deficit Reduction Act of 2005 (DRA) and was designed to provide assistance to States to balance their long-term care systems and help Medicaid enrollees transition from institutions to the community. The MFP Demonstration Program reflects a growing consensus that long-term supports must be transformed from being institutionally-based and provider-driven to "person-centered" consumer directed and community-based. Congress initially funded this program through fiscal year (FY) 2011 to:

  1. Increase the use of Home and Community Based Services (HCBS) and reduce the use of institutionally-based services;
  2. Eliminate barriers and mechanisms in State law, State Medicaid plans, or State budgets that prevent or restrict the flexible use of Medicaid funds to enable Medicaid-eligible individuals to receive long-term care in the settings of their choice;
  3. Strengthen the ability of Medicaid programs to assure continued provision of HCBS to those individuals who choose to transition from institutions; and,
  4. Ensure that procedures are in place to provide quality assurance and continuous quality improvement of HCBS.

On March 30, 2010, President Obama signed into law the Affordability Care Act (ACA). The Affordability Care Act provides an opportunity for those States that are presently participating in the program to continue building and strengthening their MFP Demonstration Programs and for additional States to participate. This law extends the MFP Demonstration Program funding through September 30, 2016, with Project activities continuing through 2019.

More information can be found on the DMA website and also in Implementation Update #54. Ready NC Connect NC