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Money Follows the Person: CMS Evaluates Demonstration Program

by Published On: Apr 26, 2011
Money Follows Person

In July 2009, the Centers of Medicare and Medicaid Services (CMS) released Implications of State Program Features for Attaining MFP Transition Goals, a report evaluating its Money Follows the Person (MFP) program. 

The report describes states’ experiences with transition programs before the Money Follows the Person demonstration started. It also addresses how differences in program features can affect the pace and degree of implementation and, ultimately, the likelihood of meeting transition goals. 

About Money Follows the Person

The Money Follows the Person demonstration, authorized by Congress as part of the 2005 Deficit Reduction Act (DRA), is designed to shift Medicaid’s long-term care spending from institutional care to HCBS. 

Congress authorized up to $1.75 billion in federal funds to support a twofold effort by state Medicaid programs:

  1. To transition people who have lived in nursing homes and other long-term care institutions for 6 months or more to homes, apartments, or group homes of 4 or fewer residents.
  2. To change state policies so that Medicaid funds for long-term care services and supports can “follow the person” to the setting of his or her choice.


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