Money Follows the Person (MFP) is a federal grant program funded by the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) and is designed to strengthen states’ long-term-care support systems. The idea is to shift Medicaid long-term care spending away from unnecessary institutionalizations and towards a system that can provide more supports and services in home and community-based settings. The MFP program gives older adults and people with disabilities who currently reside in a qualified institution/facility the opportunity to choose where they receive their long-term care services.
MFP was enacted in 2006 as part of the Deficit Reduction Act (DRA) and was extended through 2016 under the Affordable Care Act (ACA). Since its start, there have been over 40,500 people in the U.S. who have transitioned from institutions back into the community. Currently, 44 states and the District of Columbia participate in this demonstration project. Virginia launched their MFP program in 2008.