HHS Grants States Additional Year to Use American Rescue Plan Funds for Medicaid Services

The US Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced an extended deadline for states to use federal funding to improve home- and community-based services for Medicaid beneficiaries.

According to a press release by HHS, states will now be able to use funding from the American Rescue Plan through March 31, 2025, instead of March 31, 2024. The additional year is intended to support the expansion of long-term services, which could reduce costs and allow beneficiaries to receive care in settings of their choice, rather than being limited to services from institutions.

“These additional funds will help people with Medicaid to live and thrive in the setting of their choice,” said CMS Administrator Chiquita Brooks-LaSure. “With this extension, we are addressing states’ concerns, giving states the time and resources to strengthen connections to care at home and in communities.”

The American Rescue Plan has temporarily boosted funding for Medicaid to expand home- and community-based service, providing states with an additional $12.7 billion, according to the press release.

States are permitted to use the funding to address workforce and structural problems in home- and community-based services; expand services to reduce caregiver burden and provide access to individuals on waitlists; and emphasize person-centered care with personalized activities.

The funds have been used to improve pay and benefits for direct service workers, as well as support beneficiaries at high risk for contracting COVID-19 while simultaneously reducing costs by providing services at home rather than in nursing homes and other long-term care facilities.

“We are working hand-in-hand with states to ensure they have the time and support they need to strengthen their home care systems and workforce,” said HHS Secretary Xavier Becerra.

Reference:
HHS extends American Rescue Plan spending deadline for states to expand and enhance home- and community-based services for people with Medicaid. News release. US Department of Health and Human Services; June 3, 2022.