FMAP Extension a Top Priority Even if Road to Passage is Unclear. - April 22, 2010

Congressional leaders continue to pledge support for passing an extension of enhanced Medicaid Federal Medical Assistance Percentage (FMAP), despite difficulties moving legislation which carries the provision. In a private meeting with Senate aides on April 16, senior Senate staffers said that they intend to pass a six month extension of enhanced FMAP either as part of a jobs bill or, potentially, as a stand-alone measure. The legislation which includes the FMAP extension has been stalled since its passage by the Senate in March as House and Senate leaders try to find a set of mutually agreeable financial offsets for a portion of the legislation.

On April 15, the Chair of the National Governors Association, Governor Jim Douglas of Vermont, testified before the House Judiciary Subcommittee on Commercial and Administrative Law regarding the impact of congressional action on the fiscal health of states. In his testimony, Governor Douglas noted the positive benefit of the FMAP enhancement. Governor Douglas went on to highlight a recent letter signed by 47 governors to congressional leaders that requested a six month extension in the increased FMAP, and noted that "Such an extension would help states avoid some cuts or tax increases that would otherwise be necessary to balance 2011 budgets." NAPH strongly supports the FMAP extension and recently drafted a letter signed by the Partnership for Medicaid – a group of safety net providers – in support of the provision.