Though the budget reconcilation bill has MANY bad parts to it, one good thing is that Money Follows the Person (MFP) was included, as was the Family Opportunity Act. The bill that was passed by the Senate includes the version of Money Follows the Person described below. This bill must go back and pass in the House before it become law, and inside DC sources tell us it is going to be a close vote because of other negative things in the bill.
----- Original Message -----
From: "Bob Kafka" <[EMAIL PROTECTED]>
Sent: Wednesday, December 21, 2005 1:27 PM
Subject: Re: what's the status of MFP
MFP (Money Follows the Person) was in the Budget Reconciliation Act. MFP is funded at $1.75 billion starting FY 2007.
MFP is budgeted to have the following amounts for the next several years: 2007 - $250 MIL 2008 - $300 MIL 2009 - $350 MIL 2010 - $400 MIL 2011 - 450 MIL
This money will be used to increase the federal match (FMAP) for states which apply to and are accepted into the MFP federal program by CMS/Medicaid. FMAP is the federal matching rate states use for Medicaid funds.
The FMAP (Federal Match) increase in the bill is not the 100% match we wanted. However, it is still an incentive to do Money Follows the Person (MFP).
HOW MFP FMAP IS CALCULATED
Take the state's current match rate, subtract this current rate from 100%. Divide this resulting figure by 2. Add that amount to the current match rate and your answer is the increased match rate for MFP.
HUH? Well here's an example...
EXAMPLE: GEORGIA
>
> Current FMAP 2006 ------- 60.6%
>
> 100.00%
> - 60.6
________
> 39.4%
39.4% divided by 2 = 19.7%
>
> 60.6%
> +19.7%
> _________
>
> 80.3% which would be the MFP MATCH RATE
In other words, while the feds normally pay 60.6% of the Medicaid costs for Georgians on Medicaid, the feds will pay 80.3% of the costs for Georgians using MFP.
What this means is for every person getting out of a Georgia nursing home, ICF-MR facility or an IMD the state will get a federal match of 80.3% rather than the current 60.6% they are now receiving.
(we can send you the MFP FMAP your state would get if you email and request it -- pls include what state you are asking about)
This increased match rate is an incentive for states to move folks out of institutions into community services.
Of course states will have to apply to CMS to receive this higher matching rate.
*** Remember states can move folks out now even without the financial incentive. Texas, Kansas and Maryland do it now.
A VERY IMPORTANT POINT:
The reason states should start doing MFP right now (before this federal program takes effect in 2007) is because when they appy for the federal MFP what they have been doing previously will be considered in the awarding of the federal MFP dollars.
Preference will be given to states that are already starting to do the right thing.
We will keep you posted on the FINAL, FINAL outcome.
FREE OUR PEOPLE
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