House Sends $16B in Federal Medicaid Assistance to President for Signature

With House approval secured, a $16 billion package of enhanced federal Medicaid payments to states is being sent to President Obama for his signature, according to a report by Kaiser Health News.

The Senate has already passed the measure, which is less than the $23 billion states had requested. The money continues the $87 billion in extra Medicaid funding states are receiving this year under the stimulus bill. The new measure extends the enhancement for six more months but reduces the amount to 3.2 percent in the first quarter of 2011 and 1.2 percent for the second.

States need the extra funds to continue making Medicaid payments to providers, at time when state budgets are shrinking at Medicaid enrollments are up. The National Governors Association said Medicaid enrollment increased by 6.0 percent in fiscal 2009 and is estimated to increase by 8.3 percent in fiscal 2010 and 5.4 percent in fiscal 2011. Meanwhile, total Medicaid spending increased by 6.6 percent in fiscal 2009 and was estimated to increase by 10.5 percent in fiscal 2010.

Without the extra funding just passed by Congress, 28 states would have reduced Medicaid payments and another 20 states would have frozen provider payments in FY 2011, the NGA said. In addition, 25 states would have eliminated or limited benefits, nine would have delayed expansions and eight would have added or raised co-payments. Seventeen states would have raised provider taxes or fees in FY 2010 and 13 would do so in FY 2011, the NGA said.

Read the Kaiser Health News report on Medicaid.

Read other Becker's coverage on Medicaid:

$16 Billion in Medicaid Funding for States Passes Senate, Goes to House

Senate Set to Approve $16 Billion in Medicaid Funds for States

Big Medicaid Cuts Possible Next Year, With Federal Support Due to End


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