Olmstead / Balancing Incentive Program

The Centers for Medicare and Medicaid Services (CMS) awarded New Hampshire with the first Balancing Incentive Program (BIP) grant to rebalance long term services and supports funding, a provision of the health care reform law.  NH will receive $26.5 million over three years in the form of increased federal matching payments.  Under the BIP, states must expand home and community based services and supports while reducing the amount spent on institutional services.  A total of $3 billion is available from CMS until September 30, 2015 for other states that are interested.  To be eligible, states must be spending less than 50% of total Medicaid long-term services and supports funds on community based options.  CMS currently is reviewing a proposal from Maryland.  The BIP is one of several programs authorized by the health care reform law designed to address the inherent institutional bias in Medicaid.