EXTENSION OF MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION.

SEC. 204. EXTENSION OF MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION. (a) In General.— (1) Funding.—Section 6071(h) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (A) in paragraph (1)— (i) in each of subparagraphs (F) through (H), by striking “subject to paragraph (3),”; (ii) in subparagraph (G), by striking “and” at the end; (iii) in subparagraph (H), by striking the period and inserting a semicolon; and (iv) by adding at the end the following new subparagraphs: “(I) for the period beginning on December 19, 2020, and ending on September 30, 2021, the amount equal to the pro rata portion of an annual appropriation of $450,000,000; “(J) $450,000,000 for fiscal year 2022; and “(K) $450,000,000 for fiscal year 2023.” ; (B) in paragraph (2)— (i) by striking “Subject to paragraph (3), amounts” and inserting “Amounts”; and (ii) by striking “2021” and inserting “2023”; and (C) by striking paragraph (3). (2) Research and evaluation.—Section 6071(g) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (A) in paragraph (2), by striking “2016” and inserting “2026”; and (B) in paragraph (3), by inserting “and for each of fiscal years 2021 through 2023” after “2016,”. (b) Changes to Institutional Residency Period Requirement.— (1) In general.—Section 6071(b)(2) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (A) in subparagraph (A)(i), by striking “90” and inserting “60”; and (B) by striking the flush sentence after subparagraph (B). (2) [42 U.S.C. 1396a note] Effective date.—The amendments made by paragraph (1) shall take effect on the date that is 30 days after the date of the enactment of this Act. (c) Updates to State Application Requirements.—Section 6071 of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended— (1) in subsection (c)— (A) in paragraph (3), by striking “, which shall include” and all that follows through “2007”; (B) in paragraph (7)— (i) in the paragraph heading, by striking “Rebalancing” and inserting “Expenditures”; (ii) in subparagraph (A), by adding “and” at the end; and (iii) in subparagraph (B)— (I) in clause (i), by striking “and” at the end; (II) in clause (ii), by striking the period at the end and inserting a semicolon; and (III) by adding at the end the following: “(iii) include a work plan that describes for each Federal fiscal year that occurs during the proposed MFP demonstration project— “(I) the use of grant funds for each proposed initiative that is designed to accomplish the objective described in subsection (a)(1), including a funding source for each activity that is part of each such proposed initiative; “(II) an evaluation plan that identifies expected results for each such proposed initiative; and “(III) a sustainability plan for components of such proposed initiatives that are intended to improve transitions, which shall be updated with actual expenditure information for each Federal fiscal year that occurs during the MFP demonstration project; and “(iv) contain assurances that grant funds used to accomplish the objective described in subsection (a)(1) shall be obligated not later than 24 months after the date on which the funds are awarded and shall be expended not later than 60 months after the date on which the funds are awarded (unless the Secretary waives either such requirement).” ; and (C) in paragraph (13)— (i) in subparagraph (A), by striking “; and” and inserting “, and in such manner as will meet the reporting requirements set forth for the Transformed Medicaid Statistical Information System (T-MSIS);”; (ii) by redesignating subparagraph (B) as subparagraph (D); and (iii) by inserting after subparagraph (A) the following: “(B) the State shall report on a quarterly basis on the use of grant funds by distinct activity, as described in the approved work plan, and by specific population as targeted by the State; “(C) if the State fails to report the information required under subparagraph (B), fails to report such information on a quarterly basis, or fails to make progress under the approved work plan, the State shall implement a corrective action plan approved by the Secretary; and” ; and (2) in subsection (d)(4), by adding at the end the following new subparagraph: “(C) Corrective action plan progress.—In the case of a State required to implement a corrective action plan under subparagraph (C) of subsection (c)(13), the State must implement such plan and demonstrate progress in reporting information under subparagraph (B) of such subsection or progress under the approved work plan (as applicable).” . (d) Funding for Quality Assurance and Improvement; Technical Assistance; Oversight.—Section 6071(f) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended by striking paragraph (2) and inserting the following: “(2) Funding.—From the amounts appropriated under subsection (h)(1), $3,000,000 shall be available to the Secretary to carry out this subsection. Such amount shall remain available until expended.” . (e) Best Practices Evaluation.—Section 6071 of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended by adding at the end the following: “(i) Best Practices.— “(1) Report.—The Secretary, directly or through grant or contract, shall submit a report to the President and Congress not later than September 30, 2022, that contains findings and conclusions on best practices from MFP demonstration projects carried out with grants made under this section. The report shall include information and analyses with respect to the following: “(A) The most effective State strategies for transitioning beneficiaries from institutional to qualified community settings carried out under MFP demonstration projects and how such strategies may vary for different types of beneficiaries, such as beneficiaries who are aged, physically disabled, intellectually or developmentally disabled, or individuals with serious mental illnesses, and other targeted waiver beneficiary populations under section 1915(c) of the Social Security Act. “(B) The most common and the most effective State uses of grant funds carried out under demonstration projects for transitioning beneficiaries from institutional to qualified community settings and improving health outcomes, including differentiating funding for current initiatives that are designed for such purpose and funding for proposed initiatives that are designed for such purpose. “(C) The most effective State approaches carried out under MFP demonstration projects for improving person-centered care and planning. “(D) Identification of program, financing, and other flexibilities available under MFP demonstration projects, that are not available under the traditional Medicaid program, and which directly contributed to successful transitions and improved health outcomes under MFP demonstration projects. “(E) State strategies and financing mechanisms for effective coordination of housing financed or supported under MFP demonstration projects with local housing authorities and other resources. “(F) Effective State approaches for delivering Money Follows the Person transition services through managed care entities. “(G) Other best practices and effective transition strategies demonstrated by States with approved MFP demonstration projects, as determined by the Secretary. “(H) Identification and analyses of opportunities and challenges to integrating effective Money Follows the Person practices and State strategies into the traditional Medicaid program. “(2) Collaboration.—In preparing the report required under this subsection, the Secretary shall collect and incorporate information from States with approved MFP demonstration projects and beneficiaries participating in such projects, and providers participating in such projects. “(3) Waiver of paperwork reduction act.—Chapter 35 of title 44, United States Code, shall not apply to preparation of the report described in paragraph (1) or collection of information described in paragraph (2). “(4) Funding.—From the amounts appropriated under subsection (h)(1) for each of fiscal years 2021 and 2022, not more than $300,000 shall be available to the Secretary for each such fiscal year to carry out this subsection.” . (f) MACPAC Report on Qualified Settings Criteria.—Section 6071 of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note), as amended by subsection (e), is further amended by adding at the end the following: “(j) MACPAC Report.—Prior to the final implementation date established by the Secretary for the criteria established for home and community-based settings in section 441.301(c)(4) of title 42, Code of Federal Regulations, as part of final implementation of the Home and Community Based Services (HCBS) Final Rule published on January 16, 2014 (79 Fed. Reg. 2947) (referred to in this subsection as the ‘HCBS final rule’), the Medicaid and CHIP Payment and Access Commission (MACPAC) shall submit to Congress a report that— “(1) identifies the types of home and community-based settings and associated services that are available to eligible individuals in both the MFP demonstration program and sites in compliance with the HCBS final rule; and “(2) if determined appropriate by the Commission, recommends policies to align the criteria for a qualified residence under subsection (b)(6) (as in effect on October 1, 2017) with the criteria in the HCBS final rule.” . (g) [42 U.S.C. 1396a note] Application to Current Projects.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall update the terms and conditions of any approved MFP demonstration project under section 6071 of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) in effect on the date of the enactment of this Act to ensure that such terms and conditions are the same as are required for any new State applicant for such project under the amendments made by this section.