The Government Accountability Office says states are benefiting from Medicaid funding allotted under the federal stimulus package.
In a report issued Wednesday, 16 states and the District of Columbia reported that Medicaid FMAP grant awards from the American Recovery and Reinvestment Act (ARRA) have helped them increase caseloads, maintain current benefits and eligibility levels and free up state funding for other needs.
So far, the 16 states studied have drawn down $20.3 billion in Medicaid FMAP grants, comprising 87 percent of the funds available under ARRA for the period ending Sept. 15.
The GAO report, the third issued on ARRA, addresses how selected states and localities are using ARRA funds, how they're ensuring accountability for these funds, and how they're planning to evaluate the impact of the funds they received.
The FMAP awards help states finance their growing Medicaid programs, but state and District officials have expressed concern about the long-term sustainability of Medicaid programs after the funding dries up, beginning in January 2011, the report said.
Vice President Joe Biden said the report confirms what he is hearing across the country – that ARRA is working to jump-start critical infrastructure projects, cushion the impact of record state budget deficits and provide new job opportunities for hard-hit communities.
"The fact that a survey of nine major recovery act programs across 16 states by the government's top watchdog showed such significant progress is a testament to the care with which we have put taxpayer dollars to work," he said.