An economic stimulus package scheduled for approval in January could give Florida an additional $1.8 billion in federal Medicaid matching funds, according to a new report released by Families USA.
The report focuses on a proposal likely to be contained in an economic stimulus initiative that is expected to be the first order of business for the incoming Obama Administration and the new Congress.
According to the report, in addition to helping Florida provide important Medicaid services as more people need health safety-net protection during the recession, these new funds are expected to help create 34,000 jobs with $1.2 billion in new wages and spur an estimated $3.3 billion in new business activity in the state.
The report, titled "A Painful Recession: States Cut Health Safety Net Programs," spotlights the growing need for increasing federal matching funds - known as the Federal Medicaid Matching Payments, or FMAP - in the Medicaid program. It also provides a state-by-state review of which states have enacted or are considering cuts of their Medicaid program and their Children's Health Insurance Program (CHIP).
"An increase in federal Medicaid matching funds for Florida is a win-win proposition," said Ron Pollack, executive director of Families USA. "It would enable Florida to meet the growing healthcare needs of its families while providing a major boost to the state's economy."
Analysis is based on legislation introduced by Senate Majority Leader Harry Reid (D-Nev.) which would provide close to $40 billion in temporary, additional federal funding for state Medicaid programs. Similar proposals have been developed by the National Governors Association and the Obama transition team.
"Families across the nation are being battered economically during this recession, and they qualify in rising numbers - through job losses and pay cuts - for the health safety programs like Medicaid and CHIP," said Pollack. "Tragically, however, as Florida and other states struggle to balance their budgets, families in increasing numbers are seeing their benefits reduced and co-pays increased, and too many are being barred from safety-net health coverage."