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Distribution Federal Funds Home- and Community-based Services

Concerning the distribution of money received under the federal "American Rescue Plan Act of 2021" for home- and community-based services, and, in connection therewith, making and reducing an appropriation.
2021 Regular Session
Health Care & Health Insurance
Human Services
Bill Summary

Joint Budget Committee. The bill directs the department of health care policy and financing (department) to develop a spending plan (spending plan) for using enhanced, one-time federal matching money received pursuant to the "American Rescue Plan Act of 2021" (federal act) to enhance, expand, and strengthen Medicaid-eligible home- and community-based services for older adults and people with disabilities.

The department shall develop a proposed spending plan considering feedback from providers, medical assistance recipients, and advocates consistent with federal guidance on allowable uses of the federal act funding. Money from the federal act may be used for home- and community-based services, as defined in the federal act, including home health services, personal care services, PACE services, waiver services, case management services, and rehabilitative services. The department must develop the spending plan in accordance with federal act guidance. The bill specifies possible components of the spending plan.

As soon as practicable after federal guidance is received, the department shall submit the proposed spending plan to the joint budget committee of the general assembly for approval. The joint budget committee may reject or approve the spending plan and may make recommendations for modifications to the spending plan. If the spending plan is rejected, the department shall submit a new spending plan as soon as possible. The department shall not implement the spending plan unless the spending plan is approved by the joint budget committee.

The bill transfers $225,735,015 from the general fund to a cash fund created in the bill. The money in the cash fund is appropriated to the state department for the fiscal year commencing on July 1, 2021, for expenditures identified in the spending plan approved by the joint budget committee; except that the spending authority expires if a supplemental appropriation bill is enacted. During the next legislative session, the joint budget committee shall introduce a supplemental appropriation bill for the amount of the expenditures authorized. For fiscal years commencing on and after July 1, 2021, the general assembly may also appropriate money from the fund for purposes authorized under the federal act. Money in the fund may be used for the department's reasonable and necessary administrative expenses.

The bill requires the department to submit expenditure reports with additional information specified in the bill concerning the use of the money received pursuant to the federal act.

The bill repeals the statutory provisions in 2025.

The bill appropriates money to the department to administer the appropriations and adjusts the 2020 and 2021 long bill appropriations to reflect federal funding not already accounted for in the long bills.

(Note: This summary applies to this bill as introduced.)




Bill Text