108th Congress Addresses
State Fiscal Relief
January 17, 2003 - Increasingly concerned about unmanageable
state deficits, members of the House and Senate have introduced
legislation that would temporarily increase funding for Medicaid,
SCHIP, and other related programs.
Senators Lincoln Chafee (R-R.I.) and John Rockefeller (D-W.V.)
have introduced S.
138, which would temporarily increase the Federal Medical
Assistance Percentage (FMAP or "Medicaid Match")
and provide additional block grant funds. Considered an economic
stimulus bill by Chafee and Rockefeller, the bill includes
an 18-month, $10 billion FMAP increase, as well as an additional
$10 billion for block grants. The new grant funds would be
available to states through FY 2005. Similarly, the House
Democrats' stimulus proposal includes $10 billion for Medicaid.
While the Senate Democrats have not yet offered a stimulus
proposal, the "Health Care Coverage Expansion and Quality
Improvement Act" (S.
10), one of Minority Leader Tom Daschle's (D-S.D.) 2003
Democratic Leadership Bills, addresses state fiscal relief.
Specifically, S. 10 provides additional SCHIP funding, a temporary
$10 billion FMAP increase for Medicaid, and a $2.8 million
increase in block grants. Across the aisle, Senate Republicans
have indicated an interest in extending states' access to
unspent SCHIP allotments. The only state fiscal relief contained
in the Bush stimulus package is new funding for state-based
initiatives intended to help unemployed workers expedite their
re-entry into the job market ($3,000 per person).
Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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