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1. What is FMAP?
FMAP stands for Federal Medical Assistance Percentage. The Federal Medical Assistance Percentage (FMAP) is the formula used to determine the federal funding match for state Medicaid expenditures.
2. How is the FMAP formula calculated?
The federal formula for each state is calculated by comparing the average per capita income of each state to the national per capita income average for the three most recent calendar years. Therefore, states with a lower per capita income relative to the national average receive a higher amount of federal match funds (FMAP) for their Medicaid program and states with a higher per capita income relative to the national average receive a lower amount of federal match funds.
3. What is Louisiana’s current match rate?
Currently, Louisiana receives 80 cents from the federal government for every 20 cents the state allocates for the Medicaid program. This is known as an “80/20 match.” In Jan. 2011, the federal government will decrease its match rate from 80 cents to 63 cents, and Louisiana will be facing a 63/37 match.
4. Why is Louisiana’s match rate changing so drastically?
Louisiana’s match rate has changed so drastically partly because recovery dollars were pumped into the state after hurricanes Katrina and Rita, which caused an increase in Louisiana’s per capita personal income. This caused the current federal formula that is used to generate the FMAP rate to not accurately reflect the state’s actual revenue. In addition, the federal government had temporarily increased every state’s FMAP rate as part of the federal stimulus package, but the stimulus funding is ending. Louisiana’s FMAP rate will decrease 17.6 percentage points on January 1, 2011, the largest decrease in the nation.
5. Why is the FMAP situation in Louisiana a problem?
The reduction of Louisiana’s FMAP rate will result in a devastating $1.2 billion decrease in funding for the state’s $6.3 billion Medicaid program, a 20 percent cut to the program’s total budget.
6. How does the FMAP problem affect healthcare in Louisiana?
Without congressional action to adjust the current FMAP formula, Louisiana healthcare providers will experience severe cuts and may have to reduce or eliminate services in its Medicaid program.
7. What can I do to help solve the FMAP problem in Louisiana?
Call Senator Mary Landrieu at (202) 224-5824 and Senator Vitter at (202) 224-4623, and urge them to “fix Louisiana’s federal match rate for Medicaid.”
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