WASHINGTON, DC - The Subcommittee on Health, chaired by Rep. Joseph Pitts (R-PA), today held a hearing examining Medicaid and Children’s Health Insurance Program (CHIP) financing, as determined by the Federal Medical Assistance Percentage (FMAP) rate.
“Since the creation of the Medicaid program, Congress has, over time, created several different levels of federal financial participation, or ‘federal matching’ for different services, benefits, and populations. These higher levels of federal matching are exceptions to the general FMAP," stated Chairman Pitts. “FMAP also serves as the basis for determining the Federal government’s share of expenditures for the Children’s Health Insurance Program-CHIP."
During the hearing, members of the Health Subcommittee asked questions about proposals outlined by GAO on how to modify Medicaid’s financing to better target resources to vulnerable beneficiaries and make outlays more equitable for states. They also raised concerns with witnesses from Medicaid and CHIP Payment and Access Commission’s (MACPAC) and the HHS Office of the Inspector General about some of the incentives and disincentives for states inherent in the Medicaid and CHIP FMAPs.
