NEWS FROM WASHINGTON, D.C.

Angus King introduces bill ensuring equal federal funding for states choosing to expand Medicaid

Thu, 04/14/2016 - 6:30am

WASHINGTON, D.C. — Today, U.S. Senator Angus King (I-Maine) joined with Senator Mark Warner (D-Va.) to introduce the States Achieve Medicaid Expansion (SAME) Act of 2016. The legislation would ensure that states that choose to expand eligibility for Medicaid after 2014 are eligible for the same level of federal matching funds as states that expanded earlier under the terms of the Affordable Care Act. The decision to expand Medicaid ultimately rests with each State.

"States that choose to expand Medicaid for their most vulnerable citizens should not be penalized for making that decision later than others, and this legislation would ensure that all states receive an equal level of federal support moving forward," Senator King said. "Ultimately, this decision rests with the states, but our bill should remove one barrier to making a determination that Medicaid expansion will benefit the state and its citizens without threatening the state's ongoing finances."

The Affordable Care Act provides financial support to states that choose to expand their existing Medicaid programs to provide health care coverage to all individuals up to 138 percent of the federal poverty level, with the federal government covering the full cost of expansion for three years, phasing down to a 90 percent match rate for the sixth year of the expansion and in subsequent years.

While the Medicaid expansion was intended to be nationwide in 2014, the Supreme Court's holding in National Federation of Independent Business (NFIB) v. Sebelius made expansion optional for states. As a result, those choosing to expand coverage after 2014 do not receive the same federal matching rates as those that expanded immediately.

The SAME Act would ensure that all states receive an equal level of federal funding for Medicaid expansion, regardless of when a state chooses to expand coverage. Under the bill, a state would receive three years of full federal funding, phasing down to a 95 percent Federal Medical Assistance Percentages (FMAP) in Year 4; a 94 percent federal contribution in Year 5; 93 percent in Year 6; and, 90 percent for each year thereafter. States are not required to expand Medicaid under the bill.

The SAME Act is also co-sponsored by Senators Claire McCaskill (D-Mo.), Jon Tester (D-Mont.), Tammy Baldwin (D-Wisc.), Debbie Stabenow (D-Mich.), Gary Peters (D-Mich.) and Tim Kaine (D-Va.). It has been endorsed by the National Health Law Program, Families USA, Planned Parenthood Federation of America, United Methodist Church General Board of Church and Society, Center on Budget and Policy Priorities, Young Invincibles, American Heart Association/American Stroke Association, American Cancer Society Cancer Action Network, National Association of Community Health Centers, March of Dimes, Children's Defense Fund, National Association of Area Agencies on Aging, National Association of County and City Health Officials, Association of American Medical Colleges, and Mental Health America.