CMS Issues Guidance on FMAP Extension; Governors Must Request Funding

Under the Education, Jobs and Medicaid Assistance Act, states will receive a 3.2 percent increase in FMAP January to March 2011, and a 1.2 percent bump from April to June 30, when the provision expires. However, in order to receive the funding, each state's governor must formally request it within 45 days of enactment, or by September 24th. According to the CMS' guidance, states must maintain the following restrictions on the extra funding:

• A state cannot apply Medicaid eligibility standards, methodologies or procedures that are more restrictive than the policies that were in effect under the State plan -- or any waivers or demonstrations -- on July 1, 2008.
• No amounts that are directly or indirectly attributable to the increased FMAP may be deposited or credited to a reserve or “rainy day fund.”
• Political subdivisions cannot be required to contribute a greater percentage of non-federal funds than would have been required by the State plan on Sept. 30, 2008.
• Only eligible expenditures may be drawn from the fund. Disproportionate Share Hospital payments are ineligible, as are expenditures claimed based on the enhanced FMAP or that are not paid based on FMAP. Also, payment for assistance to people who are eligible for the program based on income standards that are higher than those in effect on July 1, 2008, would not be eligible for the enhanced funds.
• The state must be in compliance with “prompt payment” standards. According to CMS guidance issued on June 30,, 2009, there are two standards that must be complied with: 90 percent of all clean claims received by the State from practitioners must be paid within 30 days and 99 percent of clean claims must be paid within 90 days.

ANCOR members should contact their governor's offices and encourage them to make the request for funding and encourage them to protect funding for supports and servcies for individuals with disabilities.

Click here for the guidance to Governors.