CMS Announces $2.25 Billion in Grants to Extend Money Follows the Person Rebalancing Demonstration

HHS Community Living Initiative and Affordable Care Act funding to support community-based alternatives to institutional long term care.

July 27, 2010

Grants Help To Support Community-based Alternatives to Institutional Long Term Care

Americans with disabilities will have more help to live independently and remain in their homes and communities instead of in institutional long-term care facilities, such as nursing homes, through the availability of $2.25 billion in grants to states. The new grant solicitation issued today by the Centers for Medicare & Medicaid Services (CMS) encourages states not yet part of the Money Follows the Person Rebalancing (MFP) Demonstration to apply for grant funds.

With passage of the Affordable Care Act, states already participating in the demonstration are afforded the opportunity to expand and extend their MFP grant program.

Due to the HHS Community Living Initiative, and resources made available through the Affordable Care Act, more people with disabilities and chronic care needs will have greater opportunities to live in their communities and achieve their goals. "The Money Follows the Person Rebalancing Demonstration has been critical to our efforts to deliver on the promise of the Americans with Disabilities Act and expand access to community living services," said Health and Human Services Secretary Kathleen Sebelius.

In a letter sent to Governors, celebrating the 20th anniversary of the Americans with Disabilities Act, Secretary Sebelius encouraged states to take advantage of the numerous community initiatives within the Affordable Care Act and leverage those options through active participation in the MFP demonstration.

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.  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. The enhanced FMAP funding will then be used by states to expand services and supports. In addition, states receiving a MFP grant award will focus on re-balancing their long-term care systems needs by increasing the use of home and community-based services and decreasing the use of institutional care.

On August 11, 2010 (2:00- 4:00p.m. EDT), CMS will facilitate a national call for all interested MFP demonstration applicants.  Beginning in September, CMS will offer a series of technical assistance calls and training webinars to provide instruction to states on grant application development.

A copy of the invitation to apply for the "FY2010 Money Follows the Person Rebalancing Grant Demonstration," including the application forms and information concerning the applicant's national call, can be obtained at  For more details about Money Follows the Person, please visit the CMS website at: