2009 Session

Budget Amendments - HB1600 (Conference Report)

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Enhanced Federal Medicaid Matching Funds

Item 306 #6c

Item 306 #6c

First Year - FY2009 Second Year - FY2010
Health And Human Resources
Medical Assistance Services, Department of FY2009 ($368,795,338) FY2010 ($593,665,047) GF
FY2009 $368,795,338 FY2010 $593,665,047 NGF

(This amendment reflects additional revenue from the federal government in the American Recovery and Reinvestment Act of 2009 for Medicaid. The change in reimbursement for Medicaid, increases the federal share of Medicaid from 50 percent to approximately 56.85 percent in fiscal year 2009 and 60.19 percent in fiscal year 2010, allowing the Commonwealth to reduce its share of Medicaid spending by $368.8 million in fiscal year 2009 and $593.7 million in fiscal year 2010. The enhanced Medicaid funding will continue through December 31, 2010, i.e., the first two quarters of fiscal year 2011. This additional federal funding is designed to offset higher caseloads in Medicaid and mitigate the need for further reductions in services and provider rates. Accepting this additional federal funding precludes the state from reducing eligibility levels below those established on July 1, 2008 and imposing additional cost-sharing by localities. Several amendments within this item restore reductions that were included within the Governor's introduced budget that may violate these requirements.)