Today, the Senate approved $26 billion in relief for
states that are suffering budget shortfalls, including $16 billion in
funding for state Medicaid programs. The economic downturn, and
specifically higher unemployment rates, have increased the demand for
Medicaid while also causing greater financial strain on states.
Additional federal money to states for Medicaid was first made available in 2009 through the American Recovery and Reinvestment Act, which included an increase in the Federal Medical Assistance Percentage (FMAP). The increased funding is due to expire, however, on December 31, 2010,
and the legislation passed today by the Senate would extend the
increased matching funds through June 2011. The House of
Representatives, who are currently on August recess, will return to
Washington, D.C., to vote on the financial aid package next week.
Medicaid programs provide health coverage
for low-income individuals, including Medicare consumers who qualify for
Medicaid. People with both Medicare and Medicaid are known as
dual-eligibles. Medicaid can help cover Medicare cost-sharing and fill
in gaps in Medicare coverage, such as many long-term care supports and
services.
Read more about the FMAP legislation and today’s vote.
Learn more about implications of proposed state budget cuts.
So glad Medicaid funds have been extended to states. The popular perception of Medicaid as a welfare program which targets children and mothers often causes people to forget about dual-eligibles who also rely on that assistance in addition to their Medicare plan.
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