Number: RS22849
Title: Medicaid Financing
Authors: April Grady, Domestic Social Policy Division 
Abstract: Combined federal and state spending on the Medicaid program currently exceeds $300 billion each year. It is the largest or second-largest item in state budgets, and is second only to Medicare in terms of federal spending on health care. In 2007, Congress placed temporary moratoriums on the implementation of four controversial regulations that anticipate large reductions in federal spending for Medicaid. A war supplemental spending bill enacted in 2008 (P.L. 110-252) further delayed implementation of these regulations and two others until April 1, 2009. Most recently, debate has focused on the downturn in the U.S. economy and whether increases in the federal medical assistance percentage (FMAP, which determines the federal share of most Medicaid costs) should be included as part of a stimulus package. Stimulus bills containing a temporary increase failed a motion to proceed in the Senate (S. 3604) and passed the House (H.R. 7110) in September, and another was introduced in November (S. 3689). Over 10 years, the bills would increase Medicaid spending by an estimated $19.6 billion, $14.7 billion, and $37.8 billion, respectively. Additional legislation that would provide a temporary Medicaid FMAP increase was introduced earlier in 2008 (S. 2586, H.R. 5268, S. 2620, S. 2819).
Pages: 6
Date: November 26, 2008