The federal government will make more money available for states to fund home- and community-based services (HCBS), CMS announced in two separate rules published May 1.

The first rule finalizes the so-called Community First Choice program, which increases federal matching funds for home attendant services by six percentage points.

States hoping to claim those funds will not be allowed to make funding cuts to those services during the first 12 months of the program. Instead, they will have to maintain or exceed the previous 12 months’ funding levels.

The second rule is still at the proposal stage and would establish a new state plan option under Medicaid for HCBS.

Previously, states only received federal funding for HCBS services under waivers or demonstration programs, the proposal notes. But if the proposed change is finalized, states may include HCBS as an option in their Medicaid plans.

Medicaid HCBS services have undergone significant changes in many states, as state legislatures sought to close budget holes by cutting rates or moving patients into managed care (HHL 5/23/11, 7/12/10).

CMS hopes the double-barrel funding injection will stem the tide. “These services and programs will help keep these individuals’ health stable, and keep them home where they want to be,” said Acting CMS Administrator Marilyn Tavenner in a press release announcing the new initiatives.