Home · Glossary · Benefits/Waivers
Money Follows the Person is a federal demonstration program, originally authorized by the Deficit Reduction Act of 2005 and extended multiple times through 2027, that helps Medicaid-eligible individuals transition from institutional settings (nursing homes, intermediate care facilities, psychiatric hospitals) back into the community. The program provides enhanced federal matching funds to states that successfully move individuals to community-based settings such as private homes, apartments, or small group homes. MFP covers transition costs, housing setup, community-based services, and up to 365 days of enhanced HCBS after discharge. Over 100,000 people have transitioned through MFP since the program began. Each participating state designs its own MFP program with specific eligibility criteria and services.
If a family member is currently in an institution and wants to return to the community, MFP can fund the transition and initial community services. This program embodies the Olmstead principle that people with disabilities deserve community-based care.