The Home and Community-Based Services (HCBS) Provider Stabilization Grant Program Deadline Has Been Extended

Federal legislation (the American Rescue Plan Act) that was passed last year provided qualifying states with a temporary increase in federal matching funds for certain Medicaid expenditures for HCBS.  Indiana submitted a HCBS Spend Plan to CMS for approval, which included a provider stabilization grant program.

FSSA recently announced that that HCBS Provider Stabilization Grant program is now open. Below are details about the program and the attestation process necessary for receiving grant funds.

Eligibility:  In order to quality, providers must meet the following criteria:

• Eligible provider types include waiver, home health, behavioral health, community mental health centers, adult mental health and rehabilitation, children’s mental health wraparound, behavioral and primary health coordination, school corporations and PACE.
• Eligible provider types must 1) be an active HCBS Medicaid provider and have submitted claims in CY2021 and 2) must have been a HCBS Medicaid provider during the COVID-19 public health emergency and submitted claims in CY2019, CY2020 and/or CY2021.

Attestation Process and Deadline

• Interested providers must submit an attestation form found at this link.
• The deadline for the attestation form was originally February 10, 2022 but has been extended to February 18, 2022.
• For providers with more than one eligible Medicaid Provider ID, one form is necessary for each active ID.

Attestation Requirements

• By accepting a grant payment, a provider is subject to audit.
• Upon receipt of the grant payment, the provider must pass through at least 75% of the amount received towards HCBS related workforce stabilization activities (examples are bonuses for frontline staff, recruitment activities and hazard pay).
• For the remaining 25%, providers will have flexibility to spend on allowable expenses to meet their needs, such as PPE and vaccine support. Please refer to the CMS Guidance via SMD #21-003 here for a list of allowable expenses under Appendices B-D.

Methodology and Payment

• FSSA intends to make an update to the original methodology for calculating grant amounts to ensure a more equitable approach in light of the continuing Public Health Emergency. FSSA will now calculate the grant amount as a flat percentage of each eligible provider’s highest annual claims total across calendar years 2019, 2020 and 2021.  The original methodology used the highest claims total of two years only.
• Payments will be issued in two rounds in February and March of 2022. Providers who meet the January 25 early submission deadline will receive payments first.

More details, including an instructional video and a presentation can be found at this link.