Prior to adjourning for the summer recess, Congress laid out priorities for when they return in September, and at the top of the agenda is a second economic stimulus package intended to provide significant financial relief to states affected by the economic downturn. As part of their stimulus package, the House is considering a temporary increase in the Federal matching rate for Medicaid, otherwise known as the FMAP. Under consideration is the inclusion of H.R. 5268, introduced by Energy & Commerce Committee Chairman John Dingell (D-MI), with Health Subcommittee Chairman Frank Pallone (D-NJ) and New York Republicans Peter King and Tom Reynolds, which would provide an across-the-board 2.95% increase to each state’s FMAP rate for five quarters.      

According to Governor Paterson’s Washington office, which has advocated for FMAP relief as a top priority, such a temporary increase is worth more than $1.8 billion to New York State. Moreover, a Families USA analysis shows that the measure would yield another $3 billion in additional business activity, $1 billion in additional wages, and over 25,000 new jobs for the State. With current matching rates at 50%, New York, New Jersey, and Connecticut are counted among the states with the lowest possible FMAP rates in the country. 
     
GNYHA, with Governor Paterson’s Washington office, the Healthcare Association of New York State, and many other key stakeholders are strongly supporting this measure and continue to press for its expedient passage. Although the Senate’s stimulus package, details of which were released immediately prior to the recess, did not explicitly include an FMAP provision, states and other key stakeholders are advocating aggressively to ensure Medicaid relief is included in any measure that moves forward.