HHS Announces Adjustments to Federal Medical Assistance Percentage (FMAP) Rates

The Department of Health & Human Services today (August 26, 2010) announced the adjusted Federal Medical Assistance Percentage Rates (FMAP rates) that will apply for purposes of determining Federal Matching Shares for Medicaid and Title IV-E Foster Care, and Adoption Assistance and Guardianship Assistance Programs for the Third Quarter of Fiscal Year 2010 under adjustments made in response to about Section 5001 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5).

The FMAP is used to determine the amount of Federal matching for specified State expenditures for assistance payments under programs under Social Security Act (the Act) Sections 1905(b) and 1101(a)(8)(B).

In response to the economic downturn, Section 5001 of the ARRA provided for temporary increases in the FMAP rates to provide fiscal relief to States and to protect and maintain State Medicaid and certain other assistance programs in during a ARRA-designated recession adjustment period that runs from October 1, 2008 to December 31,  2010.  The CMS notice published sets forth adjusted FMAP rate for the third quarter of Fiscal Year 2010 under this provision.  These listed adjusted percentages apply to the third quarter of FY10, which ran from April 1, 2010 through June 30, 2010.  The rate adjustments set forth in the notice do not take into account changes, if any, that might be required as a result of Public Law 111-226, which the notice indicates will be addressed in future FMAP notices.

To review the rates and for details about how they were determined, see here

For More Information or Assistance

If you need assistance with these or other health industry regulatory, reimbursement or other operational or compliance concerns, please contact the author of this update, attorney Cynthia Marcotte Stamer.  Ms. Stamer has extensive experience advising and assisting health care providers and other health industry clients with licensure, contracting, reimbursement, compliance, public policy, regulatory, staffing, and other operations and risk management matters. Ms. Stamer also regularly publishes and conducts training on these and other compliance, management and operations matters.  You can contact Ms. Stamer to inquire about engaging her services or for information about training or other resources that she provides at (469) 767-8872 or via e-mail here.  To get more information about Ms. Stamer and her health industry experience, see here.  

Other Recent Developments

If you found this information of interest, you also may be interested in reviewing some of the following recent Updates available online by clicking on the article title:

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