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$26 Billion FMAP Extension Bill Signed into Law

Janice Simmons, for HealthLeaders Media, August 11, 2010

President Obama signed into law on Tuesday a bill (HR 1586) passed earlier by the House that includes a six-month extension through June 2011 of Medicaid's temporary enhanced Federal Medical Assistance Percentage (FMAP) for the states. FMAP was introduced last year to help financially strapped states pay for additional Medicaid coverage under the economic stimulus package.

The House returned in the midst of its five-week recess to vote for the measure 247 to 161. FMAP runs through Dec. 31 of this year, but many states had been calling for an extension since earlier this year in order to coincide with their state budget planning efforts. The House initially dropped the FMAP provision in its jobs bill approved in May over price tag concerns.

The bill approved by the House on Tuesday scaled back the FMAP increase from the initial 6.2% for six months to 3.2% for the first quarter (January 2011 through March 2011) and 1.2% for the second quarter (April 2011 through June 2011). Those states with high unemployment will continue to receive additional percentage points in funding during the six-month extension.

The cost of the bill is $26 billion, with $16 billion of that going to help states address growing Medicaid budget deficits. Another $10 billion was aimed at providing educational assistance in the states. The Congressional Budget Office said that the  bill will reduce the deficit by $1.4 billion.

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1 comments on "$26 Billion FMAP Extension Bill Signed into Law"


Cheryl Roark (6/21/2011 at 12:45 PM)
I must disagree with your statement that the FMAP was actually introduced in the last couple of years. It has been around for years. Each state has received an FMAP % for their Medicaid dollars. In hardship years, they have even received an Enhanced FMAP. In six states the FMAP is received prior to claims being paid and the money earns interest by the State. On providers who have for example $1MM in outstanding receivables and they are in a low income state, who may have say a 76% FMAP...the State is only responsible for $240,000 of those dollars and the Federal Government pays $760,000. The enhanced match is going away, the FMAP will continue as usual.