Home and Community Based Service Providers: More Medicaid Funding Heading Your Way

CMS is issuing guidance on how states can receive enhanced funding, provided through the American Rescue Plan Act of 2021 (ARP), to increase access to home and community based services (HCBS) for Medicaid beneficiaries. Today’s guidance is a key tool to assist states in leveraging federal resources to increase health equity in Medicaid beneficiaries’ access to HCBS, positive health outcomes, and community integration.

The additional federal funding made available under ARP allows states to tailor HCBS enhancements based on the needs and priorities of its residents, while protecting and strengthening the HCBS workforce, safeguarding financial stability for HCBS providers, and accelerating long-term services and supports reform and innovation.

Section 9817 of the ARP provides states with a temporary 10 percentage point increase to the federal medical assistance percentage (FMAP) for certain Medicaid HCBS from April 1, 2021 through March 31, 2022 to improve HCBS under the Medicaid program. The guidance that was issued to states via a State Medicaid Director Letter outlines the eligible services and parameters for which states can claim the increased FMAP, and provides examples of activities that states can implement to enhance, expand, or strengthen HCBS.

Click here to read the guidance issued to State Medicaid Directors by CMS. Keep in mind that states will vary in their implementation of this guidance.

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