Money Follows the Person: Updated State Transitions as of December 31, 2020

The Money Follows the Person (MFP) demonstration, established by Congress through Section 6071 of the Deficit Reduction Act of 2005, enables state Medicaid programs to help Medicaid beneficiaries who live in institutions transition into the community, and gives people with disabilities and older adults more choice in deciding where to live and to receive long-term services and supports (LTSS). From the time transitions began in 2008 to the end of 2020, states had transitioned 107,128 people to community living through MFP. The number of cumulative transitions greatly varies across states. Variation in program size reflects differences in program start dates and design, a state’s history with transition programs, program infrastructure and capacity, the availability of affordable and accessible housing, and the size of the eligible population, among other factors. Two target populations—adults with physical disabilities and older adults—represented three-quarters of all cumulative transitions. Transition numbers declined by 26 percent from calendar year 2017 to calendar year 2018, from 10,396 transitions reported in 2017 to 7,671 in 2018. From calendar year 2018 to 2019, transition numbers declined by 46 percent, from 7,671 transitions reported in 2018 to 4,173 in 2019. However, from calendar year 2019 to calendar year 2020, transitions increased by 9 percent, from 4,173 to 4,549. In each of these calendar years, two target populations—adults with physical disabilities and older adults—represented three-quarters of all transitions.