House Approves Medicaid Matching Rate Provision

August 17th, 2010

Under current law, the federal Medicaid matching rate is increased by 6.2 percentage points for all states, and by additional percentage points for states with high unemployment. These temporary increases were enacted in the Recovery Act in February 2009 in response to the increased Medicaid caseloads and decreasing state revenues resulting from the recession. The increase is scheduled to expire on December 31, 2010. The amendment will continue the additional federal assistance for six months, but would phase the level of assistance down. For January – March, 2011, the federal Medicaid matching rate would be increased by 3.2 percentage points for all States, and for April – June, 2011, the federal Medicaid matching rate would be increased by 1.2 percentage points for all States. For the same six-month period, states with high unemployment would continue to receive the additional percentage points, as they do under current law. This will ensure that states continue to receive increases throughout state fiscal year 2011.

Modified On: August 23rd, 2010