Most states to see Medicaid matching rates decline in 2014

Between 29 and 32 states are projected to experience Medicaid funding declines under recalculation of the Federal Medical Assistance Percentage (FMAP) during fiscal year 2014, according to the National Association of Medicaid Directors.

Between four and seven states are projected to see an increase in matching Medicaid funds, the association said in its report.

“This reflects personal income shifts among the states as well as an unusual population growth pattern reported by the Census Bureau for 2009-2011,” the association said. “Overall, the shifts are estimated to decrease federal Medicaid grants in FY 2014 by $1.1 to $1.9 billion when compared to the FMAPs for the current FY 2012, with decreases of $2 to $3 billion offset by somewhat more than $1 billion of increases for gaining states.”

The National Association of Medicaid Directors noted that healthcare reform expands Medicaid in most states starting January 2014. This might cause “financial and program disruptions” when states are adjusted to FMAP “as the federal government attempts to derive blended FMAPs for the two parts of the program,” the association concluded in its report.

Click here to read the report in PDF format.