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Money Follows the Person

States are facing major budget shortfalls. Major Medicaid cuts are being proposed at the federal level and are in the cards for most, if not all, states. One of the major barriers to Freeing Our People and complying with the Supreme Court's Olmstead decision is funding. As states look to deal with their budget crises and restrict their spending, they are limited by funds that must be spent. Since nursing homes are entitlement, states must fund these services - and with scarce dollars states will look to community services to remain at the same funding level if not take all the cuts.

The President's New Freedom Initiatives proposals for this year included a Money Follows the Person demonstration project, to try and get states to try the idea of letting the money follow the person. Discussions of the President's FY 2005 Budget and New Freedom initiatives sometimes confuse the Medicaid reforms that involve grants to the states and the Money Following the Individsting funds more flexible.

Highlights:

MFP has many benefits

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