White Paper: Money Follows the Person Rebalancing Demonstration

The U.S. is undergoing a major transition in the way we provide services and supports for people with disabilities. Two decades ago, people with disabilities were separated from society and isolated in institutional settings such as nursing homes and other specialized residential facilities. Following a 1999 Supreme Court decision mandating a shift to more integrated care, states looked for ways to “rebalance” care from institutional to non-institutional settings and “integrate” persons with disabilities in the community.

The Money Follows the Person Rebalancing Demonstration (MFP) has been a key program in the effort to rebalance long-term services and supports (LTSS) towards home- and community-based services (HCBS). MFP will become even more important as states implement the 2014 Settings Rule and attempt to transition even more individuals to integrated care settings. Unfortunately, the authorization for the MFP demonstration expired in September 2016 and without a reauthorization, states will lose funding for these services by 2020 and will most likely have to suspend the efforts to rebalance LTSS they have funded through this program.

The Association’s White Paper on MFP explains what the MFP Demonstration is, how it has helped transition care from institutional to community settings, and what the future holds if Congress does not reauthorize the program and allocate additional funding.