Federal Medical Assistance Percentages
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Federal Medical Assistance Percentages (FMAP) are the percentage rates used to determine the
matching funds Matching funds are funds that are set to be paid in proportion to funds available from other sources. Matching fund payments usually arise in situations of charity or public good. The terms cost sharing, in-kind, and matching can be used interc ...
rate allocated annually to certain medical and social service programs in the
United States of America The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...
. FMAP eligible programs are joint federal-state partnerships between the
federal government of the United States The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...
and
state government A state government is the government that controls a subdivision of a country in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or ...
s, which are administered by the states. Thus, FMAP is an example of
administration of federal assistance in the United States In the United States, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, or activity provided by the federal government that directly assists domestic governmen ...
. The percentages given are the share of the total cost that the federal government will pay, the rest being covered by the state. For example, 100% FMAP for some eligible service means that the federal government pays the entire cost and 50% FMAP would mean that the cost is split evenly between the state and federal government. Funds that are eligible for FMAP match include
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
,
State Children's Health Insurance Program The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to ...
(SCHIP) expenditures,
Temporary Assistance for Needy Families Temporary Assistance for Needy Families (TANF ) is a federal assistance program of the United States. It began on July 1, 1997, and succeeded the Aid to Families with Dependent Children (AFDC) program, providing cash assistance to indigent Ame ...
(TANF) Contingency Funds, the Federal share of Child Support Enforcement collections, and Child Care Mandatory and Matching Funds of the Child Care and Development Fund. State governments use FMAP percentages to determine the federal government's contribution to specific state administered programs and assess their related budgetary outlays. For example, the general 2006-2007 FMAP rate for California was 50% meaning that for every dollar that California contributed to an eligible social or medical program between 2006 and 2007, the federal government also contributed one dollar. Within
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
, the FMAP can vary. For example, the FMAP for administrative activities is between 50 and 100%. For provider payments, certain populations, programs, and services have enhanced FMAPs, such as the
Children's Health Insurance Program The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to ...
, individuals enrolled in Medicaid Expansion, and certain women with breast or cervical cancer.{{cite web , title=Federal Match Rate Exceptions , url=https://www.macpac.gov/federal-match-rate-exceptions/ , website=Medicaid and CHIP Payment and Access Commission , publisher=Medicaid and CHIP Payment and Access Commission , accessdate=27 September 2020


History

Pursuant to Section 1905(b) of the Social Security Act, the Secretary of Health and Human Services calculates the Federal Medical Assistance Percentages each year. This calculation is based upon a formula which compares individual state income to the continental United States income in order to determine ratios the federal government will utilize in assisting each state under the Act. This section also provides that no state's ratio will go lower than 50% or higher than 83%. The guidelines for calculating the FMAP are outlined in the Social Security Act and they exclusively determine the ratio of matching funds for each state's Medicaid program. Section 2105(b)of the Act stipulate that "Enhanced Federal Medical Assistance Percentages," or Enhanced FMAPs, will be calculated at the same time as the FMAPs. Enhanced FMAPs provide ratios for states to follow in funding their State Children's Health Insurance Program, or SCHIP.


Notes

*
National Conference of State Legislatures The National Conference of State Legislatures (NCSL), established in 1975, is a "nonpartisan public officials’ association composed of sitting state legislators" from the states, territories and commonwealths of the United States. Background ...
, "Federal Medical Assistance Percentages (FMAP) FY 2007 Calculations
ncsl.org
Retrieved on February 13, 2007. *
Federal Register The ''Federal Register'' (FR or sometimes Fed. Reg.) is the official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices. It is published every weekday, except on feder ...
/ Vol. 70, No. 229 / Wednesday, November 30,
Department of Health and Human Services The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is " ...
, Federal Financial Participation in State Assistance Expenditures; Federal Matching Shares for Medicaid, the State Children’s Health Insurance Program, and Aid to Needy Aged, Blind, or Disabled Persons for October 1, 2006 Through September 3
(PDF)


Federal assistance in the United States