Congress passes FMAP extension

Despite a bitter partisan battle over federal spending, Congress has passed a six-month, $16.1 billion extension to federal matching funds for Medicaid.

The FMAP extension was passed last week by the Senate and on Tuesday by the House as part of H.R. 1586, an amendment to the Teacher Jobs and State Fiscal Relief bill. It will provide a phased-down enhanced federal match of 3.1 percent beginning the first calendar quarter of FY2011, then dropping to 1.2 percent in the second calendar quarter.

The funding will bolster state coffers following the expiration of a $90 billion boost to Federal Medical Assistance Percentage (FMAP) payments provided in 2009 under the stimulus package. The new extension will extend the help to states through June 2011.

Rick Pollack, executive vice president of the American Hospital Association, applauded the Congressional effort "to protect the healthcare safety net."  

"This funding comes at a crucial time when state budgets are in the red and more people are losing their healthcare coverage," he said.

According to a survey conducted last spring by the National Conference of State Legislatures, 30 states reported that their budgets – either proposed or already enacted – assumed Congressional approval of the six-month extension to the FMAP.

Only nine of those states had budget contingencies in place in case Congress failed to approve the extension.

Republicans overwhelmingly opposed the bill. Senate Republican Leader Mitch McConnell said it's ""just the kind of bloated, slapdash affair Americans have come to expect and to loathe from Democrats in Washington."

"The purpose of this bill is clear: It's to create a permanent need for future state bailouts at a time when we can least afford it," he said.