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How The American Rescue Funds Act Saves Medicaid Recipients Over $60K

Armando Carillo Blog, Articles, Education, Information, Medicaid Mike's Blog

From the American Rescue Funds Act inside the Medicaid benefit, we are seeing an additional $10K benefit (up to $24,000) per person. The key takeaway is that staying in one’s home saves over $60K a year in nursing care for Medicaid recipients and helps you be independent.

In the state of Colorado (find your state below), there is an additional $500MM to spend in Medicaid Home and Community-Based Services (HCBS) programs over the next 3 years. Here is a summary of the estimated funding available for Colorado, by Fiscal Year:

Chart detailing the funds allocated in Colorado from the American Rescue Funds Act inside the Medicaid benefit

ARFA allocation of funds in Colorado


Here is an excerpt from the official Colorado Proposed Spending Plan for Implementation of the American Rescue Plan Act of 2021, Section 9817 with a budget of approximately $66 Million as it relates to supporting Medicaid recipients as a result of and to recover from the COVID pandemic:

Reimagining Colorado’s residential settings is required to support member health, safety, and overall well-being, as well as to create the long-term care system of the future. This future system ideally supports choice, offers the continuum of care, and is provided in the member’s home or community of choice. The ARPA funding will support collaboration with community partners to begin the work of transforming the residential care setting environment and method by which these partners provide services. Though higher rates and wages are important for sustainability, there are often specific projects that require a more significant upfront investment. With an eye toward promoting innovation, grants will be made available for one-time, transformative initiatives. Additionally, funding will be used to address specific barriers to the receipt of ongoing care in a member’s home or other community-based setting. An example would be the need for home modifications to adapt a person’s physical space or access to a personal care attendant to support a person to live independently.

Key actions in the area of Home Modifications and Home Accessibility:

1). Temporarily enhance home modifications budgets within waivers which currently offer the benefit. We will start to advocate in these program to determine the increase.

2). Pilot and evaluate the Community Aging in Place – Advancing Better Living for Elders (CAPABLE) program to support HCBS members to remain at home. The CAPABLE program provides 10 visits to the home: six with an occupational therapist and four with a nurse. We can make sure that OTs start the home modification process.

TImeline of the Colorado Community Aging in Place - Advancing Better Living for Elders (CAPABLE) program

Proposed Spending Plan for Implementation of the American Rescue Plan Act of 2021 by State

Here are direct links to download the complete plan by the states that we, Accessible Systems currently services:

Colorado >>
Texas >>
Utah >>

If you are outside of these 3 states, you can search the US Treasury website to find the implementation plan that pertains to your state.