In a move that could seriously affect long-term care providers and direct-care workers, the House of Representatives dropped the extension of additional federal Medicaid funds to states — Federal Medical Assistance Percentages (FMAP) — from legislation to extend expiring tax provisions and unemployment insurance benefits.
The legislation now moves to the Senate, where lawmakers could add the FMAP extension back into its version of the bill next week.
State budgets are in dire straits. States desperately need enhanced federal Medicaid funding to ensure their ability to meet the health care needs of their low-income citizens and families.
The FMAP extension would continue through June 30, 2011, the enhanced match provided through the American Recovery and Reinvestment Act. Without this fiscal relief, state policymakers will be forced to make substantial Medicaid cuts, including cuts to provider payment rates and health benefits for low-income residents.
This is likely to be the last opportunity this year to extend the enhanced FMAP rates, which are absolutely critical for job creation and economic growth.
FMAP’s and the Direct-Care Workforce
Many long-term care employers depend on Medicaid funds to provide services to elders and persons with disabilities. These funds pay direct-care workers’ wages, and often also help low-income direct-care workers provide health coverage for their families.
With home and community-based services already at risk in many states, additional cuts could be devastating to businesses, workers, and consumers.
More than half (30) of the states have assumed the continuation of the enhanced FMAP in their budgets. Without this funding, they may have to adopt even deeper cuts to already bare-bones state budgets.
PHI has sent a letter to Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi urging them to consider changing The American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act, so that the FMAP extension is included.
To support the FMAP extension, contact your senators.
– by Carol Regan, PHI Director of Government Affairs
