When the U.S. Congress passed a bill extending benefits for unemployed workers July 22, it left out a provision that would also have extended supplements the federal government was giving states for Medicaid benefits.
The Federal Medical Assistance Percentage (FMAP) is a minimum 6.2% increase to the federal government's usual contribution to state Medicaid programs. It was originally provided as part of the economic stimulus package. The supplement is now scheduled to expire December 31, 2010.
Several state governors have warned that they have already built the increased payments into their budgets and that they will have to cut programs if the supplement is not extended by some other legislation, according to news reports. Dental benefits for adults -- which the federal government gives states the option of including in Medicaid -- were among the first programs on the chopping block in the last round of state budget cuts.
In its version of the bill, the U.S House of Representatives pared off the $24.2 billion allocated to extend FMAP. Despite efforts in Senate, the money was not restored before Congress passed the bill, which President Barack Obama signed July 22.
Fiscal conservatives in both chambers of Congress are demanding reduced spending.
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