In a letter to the Agency for Health Care Administration (AHCA) dated May 12, 2023, HCAF formally requested an extension of the deadline for Medicaid providers to expend funds attributable to the increased Federal Medical Assistance Percentage (FMAP) for home- and community-based services (HCBS), as authorized under Section 9817 of the American Rescue Plan Act (ARPA).

Section 9817 represents the most significant investment in HCBS since the inception of Medicaid waivers. In April 2021, HCAF called on the state to take advantage of the funding opportunity. Later that year, the state drew down over $1.1 billion from the federal government to support Medicaid HCBS. The 10% enhancement to the FMAP was based on state Medicaid spending on HCBS services during the period between April 1, 2021, and March 31, 2022. AHCA opened applications for provider funding in December 2021. Payments came in the form of one-time stipends for HCBS providers, one-time payments to support HCBS staff recruitment and retainment efforts, and funds to purchase delayed egress systems for group homes and adult day training centers. An HCAF public records request to AHCA indicates that 171 home health agencies and 80 nurse registries applied for the funding.

Although the ARPA's initial spending deadline was March 31, 2024, the federal government extended it to March 31, 2025. The state, however, maintains its original spending deadline of June 30, 2023. 

"Given the compressed timeline for providers compared to other states and the delay in disbursing funds, we are concerned that the state will maintain its original spending deadline of June 30, 2023," wrote HCAF Executive Director Bobby Lolley, RN. "Many providers have expressed concerns and challenges as their time to utilize these funds approaches the current deadline. Providers should prudently implement their spending plans to maximize their long-term impact."

Download the full letter below, which was sent to newly confirmed Secretary Jason Weida, Chief of Staff Stefan Grow, and Deputy Secretary Tom Wallace. HCAF has requested a meeting with AHCA leadership to discuss the matter in greater detail.

Please stay tuned for additional information.