AAP Division of State Government Affairs

June 2, 2010


Medicaid FMAP Extension in Jeopardy: Draft Letter to Governors



As reported Friday in the AAP Department of Federal Affairs Federal Legislative Update, the US House of Representatives has removed the extension of the American Recovery and Reinvestment Act (ARRA)-increased federal medical assistance percentage (FMAP) from a federal tax "extenders" package currently in Congress. This increased FMAP has been vital in helping states maintain their Medicaid programs during the state fiscal crisis; its extension would continue much-needed fiscal relief to state Medicaid programs for 6 additional months.

Many states have been counting on the extension of this FMAP increase in their FY 2011 state budgets. As federal health care reform includes a maintenance of effort (MOE) requirement for state Medicaid programs with respect to eligibility and enrollment, it is likely that failing to extend the FMAP increase now will result in further state cuts to Medicaid payment.

Governors play a critical role in the debate over this issue, as an extension of the FMAP increase will significantly benefit state coffers. AAP chapters are encouraged to use the attached draft letter to your governor (to be placed on AAP chapter letterhead) to advocate on this issue, encouraging him/her to reach out to Congress and the Administration on this critical issue.

Chapters with questions are encouraged to contact Dan Walter in the Division of State Government Affairs at 800/433-9016 ext 4086 or dwalter@aap.org.


The Division of State Government Affairs sends this update to the Academy's Executive Committee, Board of Directors, District Vice Chairs, Chapter Presidents, Chapter Vice Presidents, Chapter Legislative Contacts, Committee on State Government Affairs, Committee on Federal Government Affairs, Chapter Executive Directors, and other interested AAP members and staff.

For additional state legislative information, strategy suggestions, in-depth resources on issues of pediatric interest, and past editions of this update, log onto the AAP Member Center and see the State Government Affairs area at http://www.aap.org/moc/stgovaffairs.

 

For more information on the issues contained in this e-mail update, please contact Dan Walter at
800/433-9016, ext 7399 or at dwalter@aap.org