The Robert Wood Johnson Foundation and Health Affairs have published a brief examining the impact of extending the additional Federal Medical Assistance Percentage (FMAP) funding offered under the American Recovery and Reinvestment Act (ARRA).  The authors assert that without extending the funding states will be forced to cut additional funding in order to balance their budgets.  The brief examines arguments both for and against extending the funding.

From the report:

Medicaid is the joint federal and state health insurance program for low-income Ameri­cans. To help states through the recession and weak recovery, federal stimulus legislation en­acted in 2009 included a temporary increase in the dollars that the federal government sent to states for the program. Originally due to expire at the end of 2010, some additional funding was extended through June 30, 2011. Now that extra assis­tance has expired. Despite the stalled econ­omy and states’ ongoing fiscal pressures, no additional federal Medicaid money is being considered at this time. This brief describes what has happened, as well as the options for states. 

Full report: Extra Federal Medicaid Support Ends (PDF | 526.90 KB)

Robert Wood Johnson Foundation and Health Affairs.  (2011).  Extra federal Medicaid support ends.