GAO: Each state would receive Medicaid increase under economic stimulus package

The economic stimulus package under debate in Congress would boost each state’s federal medical assistance percentage (FMAP) by 7.6% from the first quarter of fiscal year 2009 through the end of the first quarter of fiscal year 2011. That is according to a new Government Accountability Office report analyzing Medicaid funding in the legislation.

The Medicaid funding would total nearly $87 billion over the period, the report said. State allocations would range from less than $100 million to more than $12 billion.

Besides raising each state’s FMAP, the bill would provide additional FMAP assistance based on increased unemployment. It would create three tiers based on state unemployment rates, each of which would correspond to an additional FMAP increase.

To see the report, go to http://www.gao.gov/cgi-bin/getrpt?GAO-09-364R.