This bill would amend Medicaid to give states that expand their Medicaid coverage for individuals who are newly eligible under the Affordable Care Act (aka Obamacare) the enhanced Federal Medical Assistance Percentage (FMAP) when the expansion occurs. In essence, it would mean that those states would get more matching funds for their Medicaid program by expanding their coverage.
Currently, the enhanced FMAP equates to 100 percent in 2014-2016, 95 percent in 2017, 94 percent in 2019, and 90 percent thereafter. This bill would retain the enhanced FMAP but base it on a term of years rather than specific dates, so states would get three years of full federal funding when they expand Medicaid.
The bill would also apply retroactively, so states that have already expanded their Medicaid programs would receive the FMAP based on when their expansion occurred.