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EQUITY Responds: Answers to common questions received from either the Asset Building Community or the Disability Community
What is "Money Follows the Person"?
Lack of funding for community-based services is one of the main reasons waiting lists for community services are so long. But now, by listening to people with disabilities, the government has figured out how these services can be provided without additional costs. The money that pays for the person's services in the nursing home or other institution can be used instead to pay for their services in the community, hence the name Money Follows the Person.
Ironically, the cost of community-based services is, on average, about two-thirds the cost of the equivalent institutional services. The idea is so simple it took a while to take hold, but now there is a Medicaid reform that not only is more economical, it also gives people choice!
In 2007, under the federal Money Follows the Person initiative, states can apply to the Centers for Medicaid & Medicare Services (CMS) and over the course of the next five years about 40 states will be selected to receive a better federal match (FMAP) for this initiative. Using Money Follows the Person, for the first year a person moves out of a nursing home onto community services, the federal government will cover a higher percent of the cost of their services and states will pay a smaller portion. After that first year the match rate will return to the regular rate, but even this can save the state money.
The enhanced rate, which is set state by state using the SCHIP formula would be between 12% and 25% higher than the regular Federal match rate, depending on the state.
Across the nation 287,098 or 20.5% of all people in nursing homes have said they would rather live in the community. We want to alert the Governors and state legislatures and challenge them to take full advantage of this initiative and apply with CMS as soon as possible!
Reprinted with permission from Bob Kafka and ADAPT. For more information on Money Follows the Person or ADAPT,
ADAPT in Denver at:
201 S Cherokee
Denver, CO 80223
303/733-9324
or
ADAPT of Texas
1339 Lamar SQ DR #101
Austin, TX 78704
512/442-0252.