FMAP Update
8/12/10

On August 12, 2010, the U.S. Senate sent the U.S. House a $26 billion state aid package, defeating two amendments from Sen. Jim DeMint, R-S.C., seeking to permanently extend the 2001 and 2003 tax cuts. The package, which passed 61-39, would provide $16.1 billion to extend for six months increased Medicaid funding for states. Under the Medicaid provision, Minnesota will receive $263 million total. The House will reconvene the week of August 16 to pass the package and then it will go to President Obama for signing.

Below is the breakdown of the $263 million:

$252 million increase in Federal Medical Assistance Percentages (FMAP) funding plus $11 million reduction in Part D clawback payments for a total benefit to Minnesota of $263 million.

The $252 million increase in FMAP funding is comprised of:
• $232 million benefit to the State General Fund share of Medical Assistance;
• 10 million offset to the local share of Medical Assistance
• 10 million benefit to the State share of MinnesotaCare
 

If you have any questions, please contact Patricia Coldwell, AMC Health & Human Services Policy Analyst.