Medicaid: Improving Responsiveness of Federal Assistance to States During Economic Downturns

Thomas J. McCool

Aug. 2011 · DIANE Publishing

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In response to the most recent U.S. recession, Congress passed the Recovery Act (RA). To help states maintain their Medicaid programs and provide states with fiscal relief, the RA temporarily increased the fed. share of Medicaid funding for states. The fed. funding states receive for Medicaid is determined by a statutory formula (FMAP). The RA also required a study of options for providing a temporary increased FMAP in response to future recessions. This report reviewed how past recessions affected states¿ ability to fund Medicaid, examined the responsiveness of past increased FMAP assistance to state needs, and identified options for adjusting the increased FMAP formula for use during future recessions. Charts and tables. A print on demand report.