Federal Medical Assistance Percentages
Encyclopedia
Federal Medical Assistance Percentages (FMAP) are the percentage rates used to determine the matching funds
rate allocated annually to certain medical and social service programs in the United States of America
. FMAP eligible programs are joint federal-state partnerships between the federal government of the United States
and state government
s, which are administered by the states. Thus, FMAP is an example of administration of federal assistance in the United States.
Funds that are eligible for FMAP match include Medicaid
, State Children's Health Insurance Program
(SCHIP) expenditures, Temporary Assistance for Needy Families
(TANF) Contingency Funds, the Federal share of Child Support Enforcement collections, and Child Care Mandatory and Matching Funds of the Child Care and Development Fund.
State governments use FMAP percentages to determine the federal government's contribution to specific state administered programs and assess their related budgetary outlays. For example, the 2006-2007 FMAP rate for California was 50% - therefore, for every dollar that California contributed to an eligible social or medical program between 2006 and 2007, the federal government also contributed one dollar.
The guidelines for calculating the FMAP are outlined in the Social Security Act and they exclusively determine the ratio of matching funds for each state's Medicaid program. Section 2105(b)of the Act stipulate that "Enhanced Federal Medical Assistance Percentages," or Enhanced FMAPs, will be calculated at the same time as the FMAPs. Enhanced FMAPs provide ratios for states to follow in funding their State Children's Health Insurance Program, or SCHIP.
Matching funds
Matching funds, a term used to describe the requirement or condition that a generally minimal amount of money or services-in-kind originate from the beneficiaries of financial amounts, usually for a purpose of charitable or public good.-Charitable causes:...
rate allocated annually to certain medical and social service programs in the United States of America
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. FMAP eligible programs are joint federal-state partnerships between the federal government of the United States
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
and state government
State government
A state government is the government of a subnational entity in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or be subject to the direct control of the federal government...
s, which are administered by the states. Thus, FMAP is an example of administration of federal assistance in the United States.
Funds that are eligible for FMAP match include Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
, State Children's Health Insurance Program
State Children's Health Insurance Program
The State Children's Health Insurance Program – later known more simply as the Children's Health Insurance Program – is a program administered by the United States Department of Health and Human Services that provides matching funds to states for health insurance to families with children...
(SCHIP) expenditures, Temporary Assistance for Needy Families
Temporary Assistance for Needy Families
Temporary Assistance for Needy Families is one of the United States of America's federal assistance programs. It began on July 2, 1997, and succeeded the Aid to Families with Dependent Children program, providing cash assistance to indigent American families with dependent children through the...
(TANF) Contingency Funds, the Federal share of Child Support Enforcement collections, and Child Care Mandatory and Matching Funds of the Child Care and Development Fund.
State governments use FMAP percentages to determine the federal government's contribution to specific state administered programs and assess their related budgetary outlays. For example, the 2006-2007 FMAP rate for California was 50% - therefore, for every dollar that California contributed to an eligible social or medical program between 2006 and 2007, the federal government also contributed one dollar.
History
Pursuant to Section 1905(b) of the Social Security Act, the Secretary of Health and Human Services calculates the Federal Medical Assistance Percentages each year. This calculation is based upon a formula which compares individual state income to the continental United States income in order to determine ratios the federal government will utilize in assisting each state under the Act. This section also provides that no state's ratio will go lower than 50% or higher than 83%.The guidelines for calculating the FMAP are outlined in the Social Security Act and they exclusively determine the ratio of matching funds for each state's Medicaid program. Section 2105(b)of the Act stipulate that "Enhanced Federal Medical Assistance Percentages," or Enhanced FMAPs, will be calculated at the same time as the FMAPs. Enhanced FMAPs provide ratios for states to follow in funding their State Children's Health Insurance Program, or SCHIP.