FMAP Extension Passes Senate- House to Take Action Next Week

VHCA (8/6/2010)

Yesterday, the U.S. Senate passed the FAA Air Transportation Modernization and Safety Improvement Act (H.R. 1586) – which includes a provision extending the enhanced FMAP support for states until June 2011 – by a vote of 61 to 39.  All Democratic Senators along with Republican Senators Susan Collins (R-ME) and Olympia Snowe (R-ME) supported the bill. The additional FMAP funds were originally provided in the economic stimulus bill, and would have expired at the end of 2010 without congressional action.

Previous proposals would have provided approximately $26 billion in FMAP funds from January to June 2011. However, the bill as passed by the Senate contains a scaled back version totaling $16 billion which phases down the support over six months.  Specifically, for January – March, 2011 the federal Medicaid matching rate will be increased by 3.2 percentage points for all States, and for April – June 2011 the matching rate will be increased by 1.2 percentage points for all States.  It is important to note those states with high unemployment would continue to receive the additional percentage points, as they do under current law.

AHCA has developed preliminary estimates as to how the FMAP extension funds (as passed by the Senate) will impact states.  For Virginia, AHCA estimates the increase will be $282.4 million over the next six months.  You can check AHCA’s estimate for any other states in which you have facilities.

In a highly unusual move, House Speaker Nancy Pelosi (D-CA) is calling the House back into session next Tuesday, August 10, interrupting the August district work period to vote on the legislation. The Senate has sent the legislation to the House for action and the House must pass the identical bill in order for it to be sent to the President for his signature.  AHCA anticipates that the bill will pass the House unchanged and be signed into law swiftly.