CMS Issues Guidance on American Rescue Plan Funding for Medicaid Home and Community Based Services

Last week, the Centers for Medicare & Medicaid Services (CMS) issued guidance on how states can receive enhanced funding, provided through the American Rescue Plan Act of 2021 (ARP), to increase access to home and community-based services (HCBS) for Medicaid beneficiaries. These benefits provide critical services to millions of older adults and individuals with disabilities, allowing them to receive health services in their homes and communities, rather than in nursing homes and other institutions. The guidance is a key tool to assist states in leveraging federal resources to increase health equity in Medicaid beneficiaries’ access to HCBS, positive health outcomes, and community integration.

As the pandemic continues to impact health care, it is important that Medicaid beneficiaries with long-term services and supports needs receive the assistance required to live in the setting of their choice, including their own home. The additional federal funding made available under the American Rescue Plan allows states to tailor HCBS enhancements based on the needs and priorities of its residents, while protecting and strengthening the HCBS workforce, safeguarding financial stability for HCBS providers, and accelerating long-term services and supports reform and innovation.