Background Paper

No. 85

Money Follows the Person (MFP) Rebalancing Demonstration: A Work in Progress
February 21, 2014


Carol V. O'Shaughnessy, MA


In recent years, federal and state policy efforts have expanded opportunities for people to live in home- and community-based settings rather than in nursing homes and other institutions. As part of the Deficit Reduction Act of 2005, Congress enacted the Money Follows the Person Rebalancing (MFP) program, a Medicaid demonstration to help people who need long-term services and supports (LTSS) transition from nursing homes and other institutions to their own homes or other community settings. The Patient Protection and Affordable Care Act of 2010 extended the program through September 30, 2016. Now in its eighth year of operation, MFP grants to states have helped over 35,000 people transition from institutions. The pace of transitions has increased in recent years even as programs have faced certain barriers such as lack of accessible and affordable housing and insufficient home and community-based services to assist beneficiaries with complex needs. This publication presents an overview of the MFP program, funding, and selected outcomes as described by an ongoing evaluation for the Centers for Medicare & Medicaid Services.

Related Materials

Mathematica Policy Research, Inc., has been contracted to perform a national evaluation of the Money Follows the Person Rebalancing demonstration. See Mathematica for information on various aspects of the evaluation results.

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