Mathematica Policy Research, Inc. has released a brief examining the Money Follows the Person demonstration program.  Established as part of the Deficit Reduction Act of 2005, the program provides incentives to states to transition Medicaid beneficiaries from long-term care institutions into community-based care settings.  The authors examine program participants' quality of life over the course of their first year of participation in the program, finding an increase in life quality measures after individuals transitioned into community settings.

From the report:

The Money Follows the Person (MFP) Demonstration, established by Congress through the Deficit Reduction Act of 2005 (DRA), provides state Medicaid programs the opportunity to help transition into the community Medicaid beneficiaries living in long-term care institutions. The MFP program provides states with enhanced federal matching rates for spending on home- and community-based services (HCBS) provided to program participants and provides funding for associated administrative costs. MFP grantees, in turn, provide enhanced community services to participants during their 365-day period of program participation. In 2007, the Centers for Medi­care & Medicaid Services (CMS) awarded grants to, and has since overseen the implementation of MFP programs in 29 states and the District of Columbia.1 CMS awarded another 13 grants in February 2011; these states are currently getting the details of their programs approved and start­ing program operations.

Full report:  Money Follows the Person: Change in Participant Experience During the First Year of Community Living (PDF | 328 KB)

Mathematica Policy Research, Inc.  (2011).  Money Follows the Person: changes in participant experience during the first year of community living.  Simon, S. and Hodges, M.