FMAP

Medicaid, the largest health insurance program in the nation, is jointly financed by state and federal governments. The federal government establishes matching rates for each state each year, setting the percentage of overall costs paid by the federal government—between 50 and 83 percent—based on a state’s per capita income compared to the nation’s per capita income. The American Recovery and Reinvestment Act of 2009 provided all states with enhanced matching rates for their Medicaid programs in recognition of the fiscal issues states faced in the Great Recession.

A new CSG report takes a look at what states will face after enhanced federal Medicaid funds run out in mid-2011.

It’s no April Fool’s joke for states desperately trying to balance their budgets. A new analysis of enhanced Medicaid match rates under the 2009 American Recovery and Reinvestment Act found the average state will lose 21 cents in federal funding for every dollar the state puts toward paying Medicaid bills beginning April 1. This decrease follows on the heels of a 37-cent loss states suffered Jan. 1, according to The Council of State Governments’ report.

A new analysis by CSG of enhanced Medicaid match rates under the American Reinvestment and Recovery Act found that the average state will lose 21 cents in federal funding for every dollar the state puts towards paying Medicaid bills beginning April 1. This decrease follows on the heels of a 37-cent loss states suffered on Jan. 1.

The report looks at the value of the Recovery Act enhanced Medicaid match to states from 2009 through this year. CSG calculates the match in an easy to understand manner: for every dollar a state...

Medicaid matching rates to states before, during and after Recovery Act funding are analyzed. For every dollar a state spends for Medicaid, the average state gained $1.07 additional match for each state dollar spent under the Recovery Act enhanced rates. 

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