Final Notice on FMAP Adjustments
On October 15, 2010, HHS published a final notice to implement a Children’s Health Insurance Program Reauthorization Act of 2009 provision that requires recalculation of the Federal Medical Assistance Percentage (FMAP) for Medicaid federal matching funds in certain instances. Specifically, the notice sets forth the methodology HHS will use to determine the need for, and amount of, recalculation of a state’s FMAP to disregard identifiable significantly disproportionate employer pension or insurance fund contributions for a state. As HHS notes, when these contributions are counted, it increases state personal income and consequently decreases the FMAP for the state.
