CMS Notice, Guidance on Enhanced FMAP Rates
On August 26, 2010, HHS announced the adjusted Federal Medical Assistance Percentage (FMAP) rate for the third quarter of fiscal year (FY) 2010, as required under the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA provides 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 a period of economic downturn. The notice is effective April 1, 2010 through June 30, 2010. The notice does not account for changes recently enacted by Congress (H.R. 1586, the Education, Jobs and Medicaid Assistance Act) that extends the availability of enhanced matching payments, but HHS expects to address this new law in the future. In the meantime, CMS has issued instructions to states on how they can qualify for the extended enhanced federal Medicaid matching rates under H.R. 1586. Importantly, states must affirmatively apply for such funding by September 24, 2010.
