HCBS Settings Rule Is Clarified by CMS

July,9,2021

On April 28, 2021, Congressman Brian K. Fitzpatrick (R-PA1) sent a letter to the Centers for Medicare & Medicaid Services (CMS) with specific questions regarding the scope of the home and community-based services (HCBS) settings rule. In a letter dated June 11, 2021, CMS responded with clarifications on the rule, which is set to become effective March 17, 2023. The letter emphasizes that “the focus should be on the experience of the individuals in the setting” and that this standard “applies to both residential and non-residential settings in which individual receive Medicaid-funded HCBS.” The letter further clarifies that theHCBS settings rule “does not prohibit funding in farmsteads, intentional communities, and campus settings”and that the rule does not impose a cap on the number of individuals receiving services in a setting. To view the full letter click here.

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