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Recovery 

 

Enhanced Federal Medicaid Matching Funds Updated

Current total American Recovery & Reinvestment Act of 2009 (ARRA) Medicaid dollars awarded by federal government to Illinois: $3,541,515,693.00.

Current total ARRA Medicaid dollars drawn by Illinois: $3,541,515,693.00

  • Total ARRA matching dollars that may be drawn by the state based on Medicaid spending are made available by federal Centers for Medicare & Medicaid Services (CMS) each fiscal quarter. The amount shown is for the total made available so far through the quarter ending March 31, 2011. Amounts of ARRA match drawn represent actual receipts of matching funds, based on actual Medicaid spending, since the inception of the ARRA program.
  • Medicaid federal match rate (FMAP – Federal Medical Assistance Percentage) increased from 50.32% to 60.48% for two federal fiscal quarters from October 1, 2008, through March 31, 2009.  As of April 1, 2009, the total federal Medicaid match rate increased to 61.88%.
  • Overall, the FMAP increases allow for an estimated $2.9 billion in extra federal Medicaid funds to Illinois over a 27-month period. Of this, about $2.6 billion will result from spending by state agencies, and the remainder from spending by local Medicaid providers.
  • State funds must first be expended on qualifying Medicaid services to qualified individuals before the enhanced match may be drawn.
  • The legislation requires that states meet federal prompt payment standards to be able to receive the enhanced FMAP monies. To maximize federal matching funds, the majority of the increased funding will likely need to be used to meet prompt payment requirements. 
  • To qualify for enhanced Medicaid match funds (FMAP), Illinois may not decrease Medicaid eligibility. Further, enhanced FMAP is not applicable for costs associated with eligibility expansions that may occur after July 1, 2008.
  • States must report to Federal Centers for Medicare and Medicaid Services on how enhanced matching funds are expended.
  • On Monday, February 23, 2009, the Obama administration announced that starting February 25, 2009, Federal Medical Assistance Percentage funding (FMAP) for the first two quarters of fiscal year 2009 will be made available to states and that states may begin claiming against those funds.
  • This money will not be delivered to Illinois in one lump sum, but rather in an account made available to the state from which we may draw. The money has been set up by the federal government in special treasury accounts to be administered by the federal Centers for Medicare and Medicaid Services. In order to begin drawing money from those accounts, states will need to meet Medicaid eligibility and payment cycle requirements.
  • HFS is working closely with federal officials to make sure the state is meeting the federal requirements to ensure eligibility for this additional revenue. 
  • The $471 million made initially available to Illinois is derived from federal estimates of the state's Medicaid spending from October 2008 through March 2009, and is the estimated difference between Illinois' base match rate of 50.32 percent and the new rate of 60.48 percent. In other words, for every dollar the state spent on Medicaid, instead of being reimbursed with 50 cents, the federal government will now reimburse Illinois with 60 cents.
  • Since this will be retroactive to October 1, 2008, the state will receive that extra 10 cents on the dollar for payments beginning October 1 up until now. But from here on out, the state will begin to receive 60 cents on the dollar, through December 2010.
  • By using the new money to reduce payment wait times on Medicaid bills, the state will ensure that Illinois complies with prompt payment standards in the stimulus legislation and keeps the increased reimbursement rate for the entire 27-months.

Child Support Enforcement

  • Repeals cuts to child support enforcement funding through September 30, 2010.
  • Illinois' portion of the $1 billion restored will be based on the expenditure of performance incentive dollars after October 1, 2008. Estimated additional matching funds for the child support enforcement program for SFY09 are $18.6 million and for SFY10 are $19.5 million.
  • In December 2008, Illinois was notified that $10.8 million in performance incentive was awarded for Federal Fiscal Year 2007.