Money Follows the Person Program: New Resources Available to State Medicaid Programs to Help with Housing People Transitioning Out of Institutional Settings

Date Published: 
April 28th, 2022

HUD recently sent the following announcement to PHAs regarding new resources that can help PHAs and State Medicaid Agencies house seniors and persons with disabilities:

The Department of Health and Human Services’ Centers for Medicare and Medicaid Services (CMS) announced additional funding for the Money Follows the Person (MFP) Program. This funding allows State Medicaid Agencies to provide additional supplemental services to support seniors and persons with disabilities moving into the community.

CMS announced an increase in the reimbursement rate to 100% for many housing-related services to help State Medicaid Agencies assist people transitioning out of institutional settings under the MFP program. Under the new guidance, State Medicaid Agencies may be fully reimbursed for providing pre-tenancy supports, home modifications, application fees, and short-term rental assistance for up to 6 months as a “bridge” type subsidy providing more time for people transitioning out of institutional settings to secure long term housing assistance through one of HUD’s programs.

State Medicaid Agencies are encouraged to work with PHAs and other housing providers to administer the short-term rental assistance and to plan for how to get families into long-term housing assistance, such as Mainstream Vouchers, when the short-term subsidy ends.  Funding is also available for states that do not have MFP to implement the program and expand their Home and Community Based Service offerings. 

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