FMAP (Medicaid) Funding in Jeopardy

Bringing you all up to date, Congress (specifically the Senate) has failed to act on passage of the "jobs" bill which contains among other things the extension of the enhanced FMAP from January 1, 2011 to June 30, 2011. This extension would have restored the cuts which are to be effective next week, July 1, 2010.

Last night, an amendment (see attachment-first 2-3 pages) was introduced to the bill which reduces its cost in an attempt to get enough votes to secure passage. In this amendment, the FMAP enhanced rate would be reduced from the current 6.2% to 3.2% (Jan -- March, 2011) and 1.2% (April -- June, 2011).

Please keep in mind that any of the planned reductions in eligibility that would in any way change the existing Medicaid program in each state cannot be used as a result of the passage of the national health care reform legislation.

Senate Finance Committee staff have indicated that a reduction in continued FMAP will trigger the discretionary authority granted the Governor during the reconvened session, meaning he can choose what restorations or additions (in the case of MR waivers and children's MH funding) to make to stay within the reduced FMAP amounts. While the modifications would have been minimal if we receive the full $417 anticipated, the changes will be substantive if we get much less than originally anticipated.

If the US Congress does not pass any continued FMAP, the Virginia budget will be further out of balance because some of the actions to balance it would mean changes in eligibility, no longer options. Just between having to lift the waiver freeze and inability to reduce FPL from 80% to 75%, will mean having to make up $3.7 M in the July I budget and $49M in the second year of this biennial budget, all independent of the provider rate reductions, which is the one item that is not prohibited in terms of states’ Medicaid programs.. That said, let’s hope that Congress will pass some version of continued FMAP to lessen the impact on Virginia’s budget.

The Governor has a number of options to use and we have little indication what may be done but we will keep you informed as we gather information.


Mary Ann Bergeron

Executive Director

Virginia Association of Community Services Boards (VACSB)

Medicaid Extension Still in Jeopardy—Contact Your Senators Today!

The American Jobs and Closing Tax Loopholes bill (H.R. 4213) still lacks enough support to make it through the Senate. Today, it failed to garner the 60 votes needed. As a result, Senators are currently deciding how to pare down the cost of the bill. Urge your Senators to ensure that the extension of the increase in Medicaid funding for the states’ next fiscal year remains in the final bill.

Take Action HERE!