Distribution Federal Funds Home- and Community-based Services

The act 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-care services, personal care services, PACE services, waiver services, case management services, and rehabilitative services. The act specifies possible components of the spending plan. 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 act authorizes the department to make 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 for purposes authorized under the federal act. The act repeals the statutory provisions effective July 1, 2025. Commencing November 1, 2021, and quarterly thereafter, the act requires the department to submit expenditure reports with additional information specified in the act concerning the use of the money received pursuant to the federal act.

The act transfers $260,730,099 from the general fund to the home- and community-based services improvement fund, created in the act, and $19,830,918 from the ARPA home- and community-based services account, created in the act, in the healthcare affordability and sustainability fee cash fund to implement the spending plan.

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