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State Maintains 2023 Provider Spending Deadline for Enhanced Medicaid FMAP Funds

State Maintains 2023 Provider Spending Deadline for Enhanced Medicaid FMAP Funds


On Friday, June 3, the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), began 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. However, a recently posted frequently asked question on the state's program website reads as follows:

Question 2: How long will I have to spend the money? NEW

The State of Florida has set June 30, 2023 as the date by which providers must spend accepted funds. Florida’s HCBS Funding Opportunity for Provider Stipend and Retention payments will be a one-time disbursement.

Earlier this year, the Florida Agency for Health Care Administration (AHCA) accepted applications for one-time provider stipend payments to support HCBS providers and one-time payments to aid eligible HCBS providers in recruiting and retaining qualified staff.

Under the ARP, states could draw down a temporary 10-percentage-point increase to the Federal Medical Assistance Percentage (FMAP) for certain Medicaid expenditures for HCBS — an estimated $12.7 billion, more than $1.1 billion was allocated to Florida. 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, attributable to the ARP’s increased FMAP, on activities to enhance, expand, or strengthen HCBS in Medicaid. The extended timeframe, of an additional year, aims to help facilitate high-quality, cost-effective, person-centered services for people with Medicaid.

Additional information on states’ spending plans, including a recently updated infographic summarizing planned activities and key investments, can be viewed here.

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