The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare and Medicaid Services (CMS), is notifying states that they now have an additional year — through March 31, 2025 — to use funding made available by the American Rescue Plan (ARP) to enhance, expand and strengthen home- and community-based services (HCBS) for people with Medicaid who need long-term services and supports. The funding provides states with a temporary 10 percentage point increase to the federal medical assistance percentage (FMAP) for certain Medicaid expenditures for HCBS. As a result of the ARP increase in the federal matching rate on activities, states originally had a three-year period — from April 1, 2021, through March 31, 2024 — to use the available state funds on activities to enhance, and expand, or strengthen HCBS in Medicaid. This will allow Medicaid beneficiaries to remain in the setting of their choice—whether it is their home or another setting—and remain a valued part of their communities.
