The Centers for Medicare and Medicaid Services (CMS) has issued a State Medicaid Directors’ Letter on how states may draw down and use additional federal Medicaid funds aimed at expanding access to home- and community-based services (HCBS).

According to the American Health Care Association/National Center for Assisted Living (AHCA/NCAL), in the letter CMS indicates states must comply with two program requirements to receive the increased FMAP (Federal Medical Assistance Percentages) for HCBS expenditures:

• Federal funds attributable to the increased FMAP of 10 percent must be used to supplement existing state funds expended for Medicaid HCBS in effect as of April 1, 2021; and

• States must use state funds equal to the amount of federal funds to implement activities to enhance, expand, or strengthen HCBS under the Medicaid program.

Requirements are effective retroactively to April 1, 2021.

Review the State Medicaid Directors Letter on the CMS website. CMS is hosting a listening sessionon the guidance on May 17 at 12:30 p.m. EST. Advanced registration is requested. 

For more information, see the HHS press release and the State Medicaid Director letter.