Congress is considering whether to provide states with additional funding for health care, helping state governments at a time when most are facing budget shortfalls and considering reductions in health care and services. Unfortunately, the opportunity to protect access to health care for many Minnesotans may be slipping away.
Last week, Democratic leaders in the U.S. House of Representatives agreed to strip out a key provision extending the enhanced federal matching rate for Medicaid, known as FMAP, from a larger bill to extend unemployment insurance. (A provision extending subsidies that help the unemployed maintain their health care coverage through COBRA was also dropped from the bill). That bill passed the House last Friday and awaits Senate action as early as the week of June 7th. A key question is whether Senate Majority Leader Harry Reid will agree to add the extension of federal aid to the states to the Senate version of the bill.
Last year, Congress passed the American Recovery and Reinvestment Act (ARRA), which temporarily increased the federal share of Minnesota’s Medicaid costs from the regular 50 percent up to roughly 60 percent. But this increased matching rate is set to expire at the end of this year. Extending the matching rate would bring Minnesota an estimated $408 million, funding that could protect health care and other services as our state continues to face budget shortfalls.
The focus now shifts to the U.S. Senate, which is expected to take up the Unemployment Insurance extension bill when it returns to session the week of June 7th.
It is highly unlikely that Congress would pass a separate bill to extend federal aid to states for Medicaid and so the extension of aid must be included in some other “must pass” bill, such as the bill to extend expiring Unemployment Insurance benefits.
Both of Minnesota’s U.S. senators have been supportive of extending the federal aid to states for Medicaid. Senator Franken has been particularly outspoken about the need to extend additional aid to the states and cosponsored a separate bill. Hopefully, the Senate will move quickly to add the extension of health care funding to the Unemployment Insurance bill when they return from their recess next week.
-Steve Francisco
