CMS awards grants to promote Medicaid long-term care alternatives

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The Centers for Medicare & Medicaid Services has awarded $547 million in grants to encourage states to find ways to keep people out of nursing homes.

A total of 13 states and the District of Columbia will receive the money, which is available under an initiative in the Deficit Reduction Act of 2005. The awards are the second round of grants totaling $1.75 billion to help create a Medicaid system with more long-term care choices, CMS said this week.

States receiving grant funds will qualify for a higher percentage of federal matching dollars to help cover the costs of moving people out of nursing homes and into community settings, CMS said.

See more on the "Money Follows the Person" demonstration project at