Medicaid Financing (CRS Report for Congress)
| Release Date |
Revised Nov. 26, 2008 |
| Report Number |
RS22849 |
| Report Type |
Report |
| Authors |
April Grady, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
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Summary:
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 issecond only to Medicare in terms of federal spending on health care. In 2007, Congressplaced temporary moratoriums on the implementation of four controversial regulationsthat anticipate large reductions in federal spending for Medicaid. A war supplementalspending bill enacted in 2008 (P.L. 110-252) further delayed implementation of theseregulations and two others until April 1, 2009. Most recently, debate has focused on thedownturn in the U.S. economy and whether increases in the federal medical assistancepercentage (FMAP, which determines the federal share of most Medicaid costs) shouldbe included as part of a stimulus package. Stimulus bills containing a temporaryincrease 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 temporaryMedicaid FMAP increase was introduced earlier in 2008 (S. 2586, H.R. 5268, S. 2620,S. 2819).
