Assessing Enhanced Federal Funding for HCBS Under the American Rescue Plan

This updated brief describes the American Rescue Plan Act’s home and community-based services enhanced federal medical assistance percentage provision, CMS’s recent implementation guidance, and considerations and next steps for state policymakers. Beginning April 1, 2021 states are eligible to receive a 10 percentage point increase in their federal medical assistance percentage—the share of state Medicaid spending that is paid for by the federal government—for specified home and community based services. CMS recently released guidance on implementing Section 9817 of American Rescue Plan Act. The guidance also addresses many of the outstanding questions not addressed by the legislation.