Budget Reconciliation FY2006: Provisions Affecting the Medicaid Federal Medical Assistance Percentage (FMAP)

CRS Report for Congress
Budget Reconciliation FY2006: Provisions
Affecting the Medicaid Federal Medical
Assistance Percentage (FMAP)
April Grady
Analyst in Social Legislation
Domestic Social Policy Division
Summary
The federal medical assistance percentage (FMAP) is the rate at which states are
reimbursed for most Medicaid service expenditures. Provisions that (1) exclude certain
Hurricane Katrina evacuees and their incomes from FMAP calculations and (2) prevent
Alaska’s FY2006 and FY2007 FMAPs from falling below the state’s FY2005 level were
included in the Deficit Reduction Act (DRA) of 2005 (S. 1932, enacted as P.L. 109-

171). This report provides information on these enacted DRA provisions and on Senate-

passed and House-passed FMAP provisions that were not included in the final bill. It
will not be updated.
Background
The federal medical assistance percentage (FMAP) is the rate at which states are
reimbursed for most Medicaid service expenditures. It is based on a formula that provides
higher reimbursement to states with lower per capita incomes relative to the national
average (and vice versa); it has a statutory minimum of 50% and maximum of 83%.¹ An
enhanced FMAP is available for both services and administration under the State
Children’s Health Insurance Program (SCHIP), subject to the availability of funds from
a state’s SCHIP allotment.²

¹ For more detailed information, see CRS Report RL32950, Medicaid: The Federal Medical
Assistance Percentage (FMAP), by Christine Scott.
² Impacts on SCHIP are not addressed in this report. Although the FMAP is also used in
determining federal share of certain child support enforcement collections, Temporary Assistance
for Needy Families (TANF) contingency funds, a portion of the Child Care and Development
Fund (CCDF), and foster care and adoption assistance under Title IV-E of the Social Security
Act, budget reconciliation provisions did not affect FMAPs for these programs.
Congressional Research Service ˜ The Library of Congress

When FMAPs are calculated by the Department of Health and Human Services
(HHS) for an upcoming fiscal year (usually in the preceding November), the state and
U.S. per capita personal income amounts used in the formula are equal to the average of
the three most recent calendar years of data available from the Department of
Commerce’s Bureau of Economic Analysis (BEA). For example, to calculate FMAPs for
FY2007, HHS used per capita personal income data for 2002, 2003, and 2004 that became
available from BEA in October 2005.
BEA revises its most recent estimates of state per capita personal income on an
annual basis to incorporate revised and newly available source data on population and
income. It also undertakes a comprehensive data revision — reflecting methodological
and other changes — every few years that may result in upward and downward revisions
to each of the component parts of personal income (as defined in BEA’s national income
and product accounts, or NIPA). These components include
^!earnings (wages and salaries, employer contributions for employee
pension and insurance funds, and proprietors’ income);
^!dividends, interest, and rent; and
^!personal current transfer receipts (e.g., government social benefits such
as Social Security, Medicare, Medicaid, unemployment insurance, etc.).
As a result of these annual and comprehensive revisions, it is often the case that the
value of a state’s per capita personal income for a given year will change over time. For
example, the 2002 per capita personal income data published by BEA in October 2004
(used in the calculation of FY2006 FMAPs) differed from the 2002 per capita personal
income published in October 2005 (used in the calculation of FY2007 FMAPs).
FY2006 Budget Reconciliation
The Senate initially approved a FY2006 budget reconciliation bill on November 3,
2005 (S. 1932) with FMAP provisions that would have
^!temporarily increased FMAPs for states affected by Hurricane Katrina;
^!prevented FY2006 and FY2007 FMAPs for Alaska from falling below
the state’s FY2005 level; and
^!limited FY2006 FMAP reductions for all states.
The House budget reconciliation bill, passed on November 18, 2005 (H.R. 4241),
also included FMAP provisions that would have
^!temporarily increased FMAPs for states affected by Hurricane Katrina;
^!excluded certain Hurricane Katrina evacuees and their incomes for
purposes of calculating FMAPs; and
^!disregarded employer contributions toward pensions in the calculation of
FMAPs if they exceeded a certain threshold.
A conference report on S. 1932 (H.Rept. 109-362) containing some FMAP
provisions was filed on December 19, 2005. The House agreed to the report that day, but
the Senate passed an amended version and returned it to the House for another vote.

Ultimately, the House passed the amended bill, which was enacted as P.L. 109-171 — the
Deficit Reduction Act (DRA) of 2005 — on February 8, 2006.³
Table 1 provides more information on the Senate-passed, House-passed, and enacted
DRA provisions. Table 2 shows the estimated impact of selected provisions on FY2006
FMAPs.
Table 1. FY2006 Budget Reconciliation Provisions
Affecting Medicaid FMAPs
^P.L^.^109-171,
^FM^AP^S^.^{1932, as}ⁱⁿⁱ^tⁱ^a^l^l^y^p^a^s^s^e^d^H.R^.^{4241, as}^p^a^s^s^e^d^b^y^en^acted^on^Feb^.
^p^r^ovi^sⁱ^on^b^y^S^eⁿ^a^{te on}^N^{ov. 3, 2005}^Hou^s^{e on}^N^{ov. 18, 2005}^{8, 2006}
^In^creas^{e f}^o^r^Se^cti^oⁿ^6032.^Fo^r^item^s^an^d^S^ectⁱ^oⁿ^3021.^Fo^r^item^s^an^d^N^o^provⁱ^sⁱ^oⁿ^.^c
^Katrⁱⁿ^a^se^r^vⁱ^c^e^s^furⁿⁱ^s^he^d^d^u^rⁱ^{ng t}^h^e^se^r^vⁱ^c^e^s^furⁿⁱ^s^he^d^d^u^rⁱ^{ng t}^h^e
^r^e^lief^p^e^rⁱ^o^d^o^f^A^ugust²⁸^,²⁰⁰⁵^p^e^rⁱ^o^d^o^f^A^ugust²⁸^,²⁰⁰⁵
^t^h^r^o^{ugh M}^a^y¹⁵^,^{2006, s}^t^a^t^es^t^h^r^o^{ugh M}^a^y¹⁵^,^{2006, s}^t^at^es
^w^o^u^l^{d receiv}^e^100%^F^M^A^P^w^o^u^l^{d receiv}^e¹⁰⁰^%^FMA^P
^reim^bu^rs^em^en^{t f}^o^{r Medicaid}^reim^bu^rs^em^en^{t f}^o^{r Medicaid}
^an^{d SC}^HIP^as^sⁱ^s^t^an^{ce prov}^ided^an^{d SC}^HIP^as^sⁱ^s^t^an^{ce prov}^ided
^t^oⁱⁿ^di^vⁱ^du^al^s^w^h^{o res}ⁱ^ded^t^o^{(1) an}^yⁱⁿ^di^vⁱ^du^al^resⁱ^diⁿ^gⁱⁿ
^du^rin^g^th^{e w}^eek^precedin^g^a^paris^h^of^L^o^uⁱ^sⁱ^an^{a, a cou}ⁿ^t^y
^Hu^rrican^{e Katrin}^{a in}^on^{e of}^th^e^of^Mi^s^sⁱ^s^sⁱ^ppi^{, or a m}^a^j^o^r
^pari^s^h^es^of^L^o^uⁱ^sⁱ^aⁿ^a^o^r^dis^a^s^t^{er cou}ⁿ^t^y^of^A^l^abam^{a an}^d
^c^o^untⁱ^e^{s o}^f^Mⁱ^ssissip^pⁱ^aⁿ^d^{(2) i}ⁿ^di^vⁱ^du^al^s^w^h^{o res}ⁱ^ded
^A^l^ab^am^{a sp}^ecifⁱ^edⁱⁿ^th^e^b^ill.^du^rin^g^th^{e w}^eek^precedin^g
^Co^{sts d}ⁱ^r^ectly^attr^ib^u^t^ab^{le to}^Hu^rrican^{e Katrin}^{a in}^{a paris}^h^or
^r^e^lated^ad^mⁱⁿⁱ^str^a^tiv^{e activ}^ities^c^o^unt^y^fo^r^w^hⁱ^c^{h a}^m^a^j^o^r
^w^o^u^l^{d al}^s^o^{be rei}^m^bu^rs^ed^at^a^dis^a^s^t^{er h}^a^s^been^{declared as}^a
^100%^.^res^u^{lt of}^th^{e h}^u^rrican^{e an}^{d f}^o^r
^w^hⁱ^c^h^t^h^{e P}^r^es^iden^{t h}^a^s
^det^e^rmⁱⁿ^{ed, as}^of^S^e^pt^em^ber
^{14, 2005, t}^h^atⁱⁿ^di^vⁱ^d^u^a^l
^as^sⁱ^s^t^an^{ce u}ⁿ^d^{er th}^{e Staf}^f^o^rd
^A^c^{t is}^w^a^r^r^an^ted^.^Co^sts
^dⁱ^r^ectly^at^t^r^ib^u^t^ab^{le to}^r^e^lated
^ad^mⁱⁿⁱ^str^a^tiv^{e activ}^{ities w}^o^u^l^d^b
^al^s^o^{be rei}^m^bu^rs^{ed at}^100%^.
^Ad^j^u^s^t^m^eⁿ^t^N^o^provⁱ^sⁱ^oⁿ^.^Se^cti^oⁿ^3205.^Iⁿ^c^o^m^p^u^tⁱⁿ^g^S^ecti^oⁿ⁶⁰⁵³^.
^r^e^lated^to^Medi^cai^{d an}^{d S}^C^H^I^{P F}^M^A^P^s^Fo^llo^w^s^t^h^e
^Hu^rri^can^e^f^o^r^aⁿ^y^y^e^a^r^a^f^t^e^r^{2006 f}^o^r^a^Ho^u^s^{e b}^ill.
^Katrⁱⁿ^a^s^t^{ate th}^{at th}^{e Secretary}^of^HHS
^ev^acu^ees^d^e^termⁱⁿ^es^h^a^s^{a s}ⁱ^gⁿⁱ^fⁱ^can^t
ⁿ^u^m^{ber of}ⁱⁿ^di^vⁱ^du^al^s^w^h^o
^w^e^{re ev}^acu^{ated to an}^{d liv}^{e in}
^t^h^{e s}^t^{ate as}^{a res}^u^lt^o^f
^H^u^rrican^e^Katriⁿ^a^a^s^o^f
^O^c^t^o^{ber 1, 2005, t}^h^{e S}^ecret^ary
^w^o^u^l^{d dis}^r^eg^{ard s}^u^ch^ev^acu^ees^d
^an^{d th}^{eir in}^com^e^s^.
^Al^a^s^k^a^{Section 60}³²^.^I^f^A^l^a^s^k^a^’^s^N^o^provⁱ^sⁱ^oⁿ^.^{Section 6}⁰^53.
^F^Y^{2006 or F}^Y^{2007 F}^M^A^P^f^o^r^Fo^llo^w^s^th^e
^Medi^cai^d^or^S^C^H^I^{P i}^s^l^e^s^s^t^h^an^Sen^a^{te b}^ill.

³ See CRS Report RL33251, Side-by-Side Comparison of Medicare, Medicaid, and SCHIP
Provisions in the Deficit Reduction Act of 2005, by Karen Tritz, et al.

^P.L^.^109-171,
^FM^AP^S^.^{1932, as}ⁱⁿⁱ^tⁱ^a^l^l^y^p^a^s^s^e^d^H.R^.^{4241, as}^p^a^s^s^e^d^b^y^en^acted^on^Feb^.
^p^r^ovi^sⁱ^on^b^y^S^eⁿ^a^{te on}^N^{ov. 3, 2005}^Hou^s^{e on}^N^{ov. 18, 2005}^{8, 2006}
ⁱ^t^s^F^Y^{2005 F}^M^A^P^{, t}^h^{e F}^Y²⁰⁰⁵
^F^M^A^P^w^o^u^l^{d appl}^y^.
^Lⁱ^m^itatioⁿ^S^ecti^oⁿ^6037.^FY²⁰⁰⁶^FMA^P^s^N^o^provⁱ^sⁱ^oⁿ^.^N^o^provⁱ^sⁱ^oⁿ^.
^on^F^Y²⁰⁰⁶^f^o^r^Medi^cai^{d an}^{d S}^C^H^I^{P w}^o^u^l^d
^r^e^d^u^ctioⁿ^{be re-}^c^om^pu^t^e^d^s^o^t^h^atⁿ^o
^F^Y^{2006 F}^M^A^P^w^o^u^l^{d be l}^e^s^s
^th^an^th^{e g}^r^{eater of}^{(1) a s}^t^a^t^e’^s
^F^Y^{2005 F}^M^A^P^mⁱⁿ^u^s^0.5
^p^e^r^cen^tag^e^p^oⁱⁿ^t^{s (}⁰^.1ⁱⁿ^th^e
^cas^{e of}^D^e^l^a^w^a^r^e^an^d
^Mich^ig^an^{, 0.3 in}^th^{e cas}^{e of}
^K^eⁿ^t^u^c^k^y^{), or (2) t}^h^{e F}^Y²⁰⁰⁶
^FM^A^P^t^h^a^t^w^o^ul^d^ha^ve^b^e^eⁿ
^determ^ine^d^f^o^{r a s}^t^{ate if}^per
^{capita in}^com^e^s^f^o^{r 2}⁰^{01 an}^d
^{2002 t}^h^at^w^e^{re u}^s^{ed t}^o
^cal^cu^l^a^t^e^t^h^{e s}^t^at^e’^s^F^Y²⁰⁰⁵
^FMA^P^w^e^r^e^used^.
^Em^pl^oy^er^N^o^provⁱ^sⁱ^oⁿ^.^S^ecti^oⁿ^3148.^F^o^{r pu}^rpos^es^of^N^o^provⁱ^sⁱ^oⁿ^.
^pen^sⁱ^oⁿ^com^p^u^tin^g^{Medicaid FMA}^P^s
^c^o^nt^rⁱ^b^u^tⁱ^o^ns^begiⁿⁿⁱⁿ^g^wⁱ^t^h^F^Y^2006,
^em^pl^oy^{er con}^t^ri^bu^tⁱ^on^s^t^o^w^a^rd
^pen^sⁱ^oⁿ^s^w^o^u^l^{d be di}^s^r^eg^arded
ⁱⁿ^com^p^u^tⁱⁿ^g^{a s}^t^ate’^s^per
^cap^{ita in}^co^m^e⁽^b^u^tⁿ^o^t^U.S.^p^e^r
^{capita in}^co^m^e^{) if}^th^ey^ex^ceed
^{50% of}^th^e^s^t^ate’^s^{total in}^creas^e
ⁱⁿ^pers^on^alⁱⁿ^com^e^f^o^r^a^peri^od.
^Source:^C^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch^Serv^ice.
^{a. T}^h^{e paris}^h^es^{(31 in}^L^o^uⁱ^sⁱ^an^{a) an}^{d cou}ⁿ^ties⁽^{47 in}^Mis^sⁱ^s^sⁱ^{ppi, 11 in}^A^l^abam^{a) s}^p^ecifⁱ^{ed i}ⁿ^th^{e bill}
^{appear to be th}^os^{e th}^{at h}^a^d^been^desⁱ^gⁿ^a^ted^f^o^rⁱⁿ^divⁱ^du^{al as}^sⁱ^s^t^an^{ce f}^o^llowⁱⁿ^g^Hu^rrican^{e Katrin}^{a as}
^of^th^e^{date th}^{e Sen}^a^{te Fin}^aⁿ^{ce C}^o^m^m^{ittee appr}^ov^{ed its}^recon^c^iliation^propos^al^(October^25,^2005).
^On^Octo^b^e^r²⁷^,^tw^o^ad^d^itioⁿ^a^{l co}^uⁿ^{ties in}^Mississip^pⁱ^w^e^r^e^d^e^sⁱ^gⁿ^a^ted^f^o^rⁱⁿ^dⁱ^vⁱ^d^u^{al assistan}^ce.
^T^h^{ese co}^uⁿ^{ties ar}^{e n}^o^{t listed}ⁱⁿ^th^{e b}^ill.
^{b. A}^ccordin^g^to^Feder^a^{l Regis}^t^er^no^tⁱ^c^e^s^fr^o^m^t^h^e^Fe^d^e^r^a^l^E^m^e^r^ge^nc^y^M^a^na^ge^m^e^nt^A^g^eⁿ^c^y⁽^F^E^M^A⁾^,³¹
^paris^h^esⁱⁿ^L^o^uⁱ^sⁱ^an^{a, 47 cou}ⁿ^tiesⁱⁿ^Mis^sⁱ^s^sⁱ^ppi,^an^d¹⁰^couⁿ^tiesⁱⁿ^A^l^abam^a^h^a^{d been}^desⁱ^gⁿ^a^ted
^f^o^{r i}ⁿ^di^vⁱ^du^al^as^sⁱ^s^t^an^{ce f}^o^l^l^o^wⁱⁿ^g^H^u^rri^can^{e K}^a^t^rⁱⁿ^{a as}^of^S^e^pt^em^{ber 14, 2005.}
^{c. Section}^{6201 of}^th^{e law}^appropriates^{$2 billion}^f^o^{r u}^s^e^by^th^{e Secretary}^of^{HHS to pay}^elig^ible^s^t^ates^f^o^r,
^a^m^o^{ng o}^t^he^r^t^hⁱ^ngs,^t^h^e^no^n-fe^d^e^r^a^l⁽ⁱ^.^e^.^,^st^a^t^e⁾^s^h^{are of}^ex^p^e^ndⁱ^t^u^r^e^s^f^o^{r Medicaid an}^{d SC}^HIP
^as^sⁱ^s^t^an^{ce prov}^{ided to certain}ⁱⁿ^divⁱ^du^als^af^f^ect^{ed by}^Hu^rric^aⁿ^e^K^a^t^rⁱⁿ^{a. W}^h^{ile FMA}^P^s^{are n}^o^t
^directly^af^f^{ected, th}^{e prov}^is^ion^allow^s^f^o^{r an}ⁱⁿ^cr^eas^{e in}^th^{e f}^e^{deral s}^h^{are of}^{a s}^t^ate’^s^Medicaid^an^d
^SCHI^P^ex^p^eⁿ^d^itu^r^e^s.
^d^.^I^t^{is u}ⁿ^c^lear^w^h^eth^e^r^th^{e in}^ten^t^o^f^th^{is p}^r^o^v^isioⁿ⁽^d^escr^ib^edⁱⁿ^th^{e b}^{ill as “}^h^o^l^d^h^a^r^m^les^s^f^o^r^Katrⁱⁿ^a
^im^{pact”) is}^{to prev}^en^{t both}ⁱⁿ^creas^es^and^decreas^esⁱⁿ^FMA^P^s^th^{at m}^a^y^res^u^{lt f}^r^om^th^{e pres}^en^{ce of}
^ev^acu^ees^.^States^w^ith^low^e^{r per capita in}^com^e^s^re^lativ^{e to th}^{e n}^a^tion^a^{l av}^erag^e^receiv^e^hⁱ^g^h^e^r^FMA^P^s
^(an^d^vⁱ^{ce v}^e^rs^{a). In}^th^eory^{, if}^Hu^rrican^{e Katrin}^{a ev}^acu^ees^h^a^v^e^lowⁱⁿ^com^e^s^,^the^y^c^o^ul^d^ha^{ve a}
^dam^p^enⁱⁿ^g^ef^f^{ect on}^{a s}^t^ate’^s^{per capita in}^com^e^{, w}^h^ich^cou^l^{d s}^e^rv^e^toⁱⁿ^creas^e^th^e^s^t^ate’^s^FMA^P^{. A}^s
^w^r^itten^,^th^{e p}^r^o^v^isioⁿ^w^o^u^l^d^r^e^q^u^ir^e^ev^acu^ees^to^b^e^dⁱ^sr^eg^ar^d^e^d^ev^en^if^th^eirⁱⁿ^clu^s^ioⁿ^w^o^u^l^d^incr^eas^e
^a^s^t^a^t^e^’^s^F^M^A^P^.^I^t^a^p^p^e^a^r^{s a}^s^t^h^o^{ugh t}^h^e^fi^r^s^t^FM^A^P^y^e^a^r^fo^r^w^hⁱ^c^{h t}^h^e^p^r^o^vⁱ^sⁱ^o^{n c}^o^ul^d^a^p^p^l^yⁱ^s
^F^Y^{2008, w}^h^en^{2005 per capi}^t^a^pers^on^alⁱⁿ^com^e^d^a^t^a⁽^t^{he f}ⁱ^rs^t^y^{ear f}^o^{r w}^hⁱ^c^h^ev^acu^ees^an^{d t}^h^ei^r
ⁱⁿ^com^e^s^cou^l^{d be di}^s^r^eg^{arded) w}^o^u^l^{d f}ⁱ^rs^t^{be u}^s^{ed by}^H^H^S^(s^{ee t}^e^x^t^f^o^{r a di}^s^c^ussi^oⁿ^o^f^F^M^A^P
^timⁱⁿ^g⁾^.

Table 2. Medicaid FMAPs Under Current Law
and Under Selected Provisions of S. 1932 and H.R. 4241
^F^M^AP^under
^F^M^AP^under^S^ecti^oⁿ^{3148 of H.R}^.
^S^ecti^oⁿ^{6037 of S}^.^{4241 as}^p^a^s^s^e^d^b^y
^{1932 as}ⁱⁿⁱ^tⁱ^a^l^l^y^Hou^s^e^(di^s^r^e^gar^{d of}
^pa^{ssed by}^Sena^t^e^ext^r^aor^diⁿ^a^r^y
⁽^lim^ita^tio^{n o}ⁿ^a^em^ployer^pens^ion^b
^M^e^{dicaid FM}^{AP under current law}^F^Y^{2006 r}^e^du^ctⁱ^oⁿ⁾^co^ntrib^u^tioⁿ⁾
^Estⁱ^m^a^t^e^d^E^s^ti^m^a^ted
^ch^an^ge^ch^an^ge
^FY^05-^FY^06-^from^from
^FY⁰⁶^FY⁰⁷^FY06^current^FY06^current
^St^a^t^e^FY05^FY06^FY07^ch^an^ge^ch^an^ge^es^ti^m^a^te^la^w^es^ti^m^a^te^la^w
^A^l^abam^a^70.83^69.51^68.85^-¹^.32^-^0.66^70.33^0.82^69.51^0.00
^Al^a^s^k^a^c^57.58^57.58^57.58^0.00^0.00^57.08^6.92^50.16^0.00
^A^rⁱ^z^on^a^67.45^66.98^66.47^-⁰^.47^-^0.51^67.35^0.37^66.98^0.00
^A^r^k^aⁿ^s^as^74.75^73.77^73.37^-⁰^.98^-^0.40^74.25^0.48^73.77^0.00
^C^a^lⁱ^f^ornⁱ^a^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^C^o^l^o^rado^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^C^oⁿⁿ^ectⁱ^c^u^t^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^D^e^l^a^w^a^re^50.38^50.09^50.00^-⁰^.29^-^0.09^50.28^0.19^50.11^0.02
^{District o}^f^70.00^70.00^70.00^0.00^0.⁰⁰^70.00^0.00^70.00^0.00
^Co^lu^m^b^ia
^F^l^ori^d^a^58.90^58.89^58.76^-⁰^.01^-^0.13^58.92^0.03^58.89^0.00
^G^e^orgⁱ^a^60.44^60.60^61.97^0.16^1.37^60.84^0.24^60.60^0.00
^H^a^w^aⁱⁱ^58.47^58.81^57.55^0.34^-¹^.26^58.81^0.00^58.81^0.00
^Idah^o^70.62^69.91^70.36^-⁰^.71⁰^.45^70.44^0.53^69.91^0.00
^I^llin^oⁱ^s⁵⁰^.⁰⁰⁵⁰^.⁰⁰⁵⁰^.⁰⁰⁰^.⁰⁰⁰^.⁰⁰⁵⁰^.⁰⁰⁰^.⁰⁰⁵⁰^.⁰⁰⁰^.⁰⁰
^In^di^an^a^62.78^62.98^62.61^0.20^-⁰^.37^62.98^0.00^63.04^0.06
^Iow^a^63.55^63.61^61.98^0.06^-¹^.63^63.61^0.00^63.61^0.00
^K^aⁿ^s^as^61.01^60.41^60.25^-⁰^.60^-^0.16^60.54^0.13^60.56^0.15
^K^eⁿ^t^u^c^k^y^69.60^69.26^69.58^-⁰^.34⁰^.32^69.30^0.04^69.26^0.00
^L^o^uⁱ^sⁱ^an^a^71.04^69.79^69.69^-¹^.25^-^0.10^70.54^0.75^69.79^0.00
^Maiⁿ^e^64.89^62.90^63.27^-¹^.99⁰^.37^64.39^1.49^62.90^0.00
^Mary^l^aⁿ^d^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^Mas^s^ach^u^s^et^t^s^50.00^50.00^50.00^0.00^0.00^50.00^0.00^50.00^0.00
^Mi^chⁱ^g^an^56.71^56.59^56.38^-⁰^.12^-^0.21^56.61^0.02^56.88^0.29
^Miⁿⁿ^e^s^o^t^a^50.00^50.00^50.00^0.00^0.00^50.00^0.00^50.00^0.00
^Mi^s^sⁱ^s^sⁱ^ppi^77.08^76.00^75.89^-¹^.08^-^0.11^76.58^0.58^76.00^0.00
^Mi^s^s^o^u^rⁱ^61.15^61.93^61.60^0.78^-⁰^.33^61.93^0.00^61.93^0.00
^Mon^t^an^a^71.90^70.54^69.11^-¹^.36^-^1.43^71.40^0.86^70.60^0.06
^N^e^bras^k^a^59.64^59.68^57.93^0.04^-¹^.75^59.68^0.00^59.82^0.14
^N^e^v^a^da^55.90^54.76^53.93^-¹^.14^-^0.83^55.89^1.13^54.76^0.00
^New^50.00^50.00^50.00^0.00^0.⁰⁰^50.00^0.00^50.00^0.00
^Ham^p^sh^ire
^N^e^w^Jers^ey^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^N^e^w^Mexⁱ^co^74.30^71.15^71.93^-³^.15⁰^.78^73.80^2.65^71.15^0.00
^N^e^w^Y^o^rk^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^N^o^rt^h^C^a^rolⁱⁿ^a^63.63^63.49^64.52^-⁰^.14¹^.03^63.77^0.28^63.50^0.01
^N^o^rt^h^D^a^k^o^t^a^67.49^65.85^64.72^-¹^.64^-^1.13^66.99^1.14^65.87^0.02
^O^hⁱ^o^59.68^59.88^59.66^0.20^-⁰^.22^59.88^0.00^59.92^0.04

^F^M^AP^under
^F^M^AP^under^S^ecti^oⁿ^{3148 of H.R}^.
^S^ecti^oⁿ^{6037 of S}^.^{4241 as}^p^a^s^s^e^d^b^y
^{1932 as}ⁱⁿⁱ^tⁱ^a^l^l^y^Hou^s^e^(di^s^r^e^gar^{d of}
^pa^{ssed by}^Sena^t^e^ext^r^aor^diⁿ^a^r^y
⁽^lim^ita^tio^{n o}ⁿ^a^em^ployer^pens^ion^b
^M^e^{dicaid FM}^{AP under current law}^F^Y^{2006 r}^e^du^ctⁱ^oⁿ⁾^co^ntrib^u^tioⁿ⁾
^Estⁱ^m^a^t^e^d^E^s^ti^m^a^ted
^ch^an^ge^ch^an^ge
^FY^05-^FY^06-^from^from
^FY⁰⁶^FY⁰⁷^FY06^current^FY06^current
^St^a^t^e^FY05^FY06^FY07^ch^an^ge^ch^an^ge^es^ti^m^a^te^la^w^es^ti^m^a^te^la^w
^O^k^l^a^h^o^m^a^70.18^67.91^68.14^-²^.27⁰^.23^69.68^1.77^67.91^0.00
^O^r^eg^on^61.12^61.57^61.07^0.45^-⁰^.50^61.67^0.10^61.57^0.00
^Penⁿ^s^y^l^v^aⁿⁱ^a^53.84^55.05^54.39^1.²¹^-⁰^.66^55.05^0.00^55.05^0.00
^R^h^{ode Is}^l^aⁿ^d^55.38^54.45^52.35^-⁰^.93^-^2.10^54.88^0.43^54.45^0.00
^S^o^u^t^h^C^a^rolⁱⁿ^a^69.89^69.32^69.54^-⁰^.57⁰^.22^69.46^0.14^69.32^0.00
^S^o^u^t^h^D^a^k^o^t^a^66.03^65.07^62.92^-⁰^.96^-^2.15^65.53^0.46^65.07^0.00
^T^eⁿⁿ^e^s^s^e^e^64.81^63.99^63.65^-⁰^.82^-^0.34^64.31^0.32^63.99^0.00
^T^e^x^a^s^60.87^60.66^60.78^-⁰^.21⁰^.12^61.32^0.66^60.83^0.17
^U^t^ah^72.14^70.76^70.14^-¹^.38^-^0.62^71.77^1.01^70.76^0.00
^V^e^rm^on^t^60.11^58.49^58.93^-¹^.62⁰^.44^59.61^1.12^58.49^0.00
^Vⁱ^rgⁱⁿⁱ^a^50.00^50.00^50.00^0.⁰⁰^0.00^50.00^0.00^50.00^0.00
^Was^hⁱⁿ^g^t^on^50.00^50.00^50.12^0.⁰⁰^0.12^50.00^0.00^50.00^0.00
^Wes^t^Vⁱ^rgⁱⁿⁱ^a^74.65^72.99^72.82^-¹^.66^-^0.17^74.15^1.16^72.99^0.00
^Wi^s^c^on^sⁱⁿ^58.32^57.65^57.47^-⁰^.67^-^0.18^57.82^0.17^57.65^0.00
^Wy^omⁱⁿ^g^57.90^54.23^52.91^-³^.67^-^1.32^57.40^3.17^54.23^0.00
^Source:^F^Y^2005-^F^Y^{2007 cu}^rren^t^l^a^w^F^M^A^P^s^w^e^{re obt}^aiⁿ^e^d^fr^o^m^D^e^part^m^eⁿ^t^of^H^eal^t^h^an^{d H}^u^m^aⁿ
^Ser^v^{ices (}^HHS)ⁿ^o^tic^e^s^p^u^b^lish^e^dⁱⁿ^th^e^Feder^a^{l Regis}^t^er^{. Oth}^e^{r f}ⁱ^g^u^r^es^{are C}^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch
^S^e^rvⁱ^ce^es^tⁱ^m^at^es^bas^e^{d on}^an^al^y^sⁱ^s^of^dat^a^f^r^om^D^e^part^m^eⁿ^t^of^C^o^m^m^e^rce,^Bu^reau^of^Econ^omⁱ^c^Aⁿ^al^y^sⁱ^s
^(BEA^),^St^at^{e and Regi}^onal^T^abl^es^(O^ct^{. 2003) an}^d^St^at^{e Per}^s^ona^l^Iⁿ^c^o^m^e^(O^ct^{. 2004), an}^{d pers}^on^al
^co^m^m^uⁿⁱ^catioⁿ^w^ith^B^E^A^.
^No^te:^Neith^er^o^f^th^{e p}^r^o^v^isioⁿ^s^sh^o^wⁿ^h^e^r^e^w^e^r^eⁱⁿ^clu^d^edⁱⁿ^th^{e f}ⁱⁿ^a^{l b}^u^d^g^{et r}^ecoⁿ^c^iliatioⁿ^b^{ill (}^D^RA^,
^en^act^{ed as}^P.L^.^109-^{171). S}^ee^Ta^ble¹^f^o^r^m^o^r^eⁱⁿ^f^o^r^m^atioⁿ^.
^{a. A}^m^on^g^t^h^{e 31 s}^t^at^es^t^h^at^w^o^u^l^d^h^a^v^e^an^F^Y²⁰⁰⁶^F^M^A^Pⁱⁿ^creas^{e u}ⁿ^d^{er t}^hⁱ^s^provⁱ^sⁱ^oⁿ^,^{11 (A}^Z^,^G^A^{, H}^I^,
^ID^{, K}^S^{, N}^V^,^N^C^{, O}^R^{, S}^C^{, T}^X^{, an}^{d U}^T^{) ben}^e^fⁱ^t^m^o^s^t^f^r^om^t^h^{e u}^s^{e of}²⁰⁰¹^aⁿ^d^{2002 pe}^r^c^a^pⁱ^t^a
ⁱⁿ^com^e^s^u^s^{ed t}^o^cal^cu^l^a^t^e^t^h^{e s}^t^at^e’^s^F^Y^{2005 F}^M^A^P⁽ⁱ^{.e., 2001 an}^{d 2002}^am^ouⁿ^t^s^t^h^at^w^e^{re av}^ai^l^a^bl^e
^{prior to B}^E^A^’^s^m^o^s^t^recen^{t data rev}ⁱ^sⁱ^on^s⁾^{. T}^h^{e rem}^aⁱⁿⁱⁿ^g^{20 s}^t^ates^w^o^u^l^{d h}^a^v^e^{a h}ⁱ^ghe^r^F^Y²⁰⁰⁶
^FM^A^P^und^e^r^t^h^e^p^r^o^vⁱ^sⁱ^o^{n l}^a^ngua^ge^t^h^a^t^lⁱ^mⁱ^t^s^FY^{2006 F}^M^A^P^redu^ctⁱ^oⁿ^s^t^o^{0.5 percen}^t^a^g^e^poiⁿ^t^s
^{(0.1 in}^th^{e cas}^{e of}^{DE an}^{d MI, 0.3 in}^th^{e cas}^{e of}^KY).
^b^.^A^s^the^b^{ill la}^ngua^ge^r^e^a^d^s,^aggr^egat^e^em^pl^oy^{er con}^t^ri^bu^tⁱ^oⁿ^s^t^o^w^a^{rd pen}^sⁱ^oⁿ^s^w^o^u^l^{d be di}^s^r^eg^{arded i}^f
^th^ey^ex^{ceed 50% of}^{a s}^t^ate’^s^{total in}^creas^{e in}^pers^on^{al in}^com^e^.^How^e^v^e^{r, th}^{e table f}ⁱ^g^u^r^es^as^s^u^m^e
^th^{at th}^{e in}^ten^t^o^f^t^h^e^p^r^o^v^isioⁿ^{is to}^dⁱ^sr^eg^ar^d^incr^eas^e^sⁱⁿ^s^u^ch^con^t^ribu^tion^s^{. T}^h^{e f}ⁱ^g^u^r^es^als^o
^p^r^ov^{ide an}^ov^eres^tim^{ate of}^th^{e prov}^is^ion^’^s^im^{pact on}^FMA^P^s^becau^s^e^th^eyⁱⁿ^clu^d^e^e^m^p^l^o^y^e^r
^coⁿ^t^rⁱ^b^u^tioⁿ^s^f^o^r^b^o^t^h^p^eⁿ^s^ioⁿ^an^dⁱⁿ^su^r^aⁿ^{ce (}^h^ealth^{, lif}^{e, etc.)}^f^uⁿ^d^{s, w}^h^ich^canⁿ^o^{t b}^e^id^en^tif^ied
^s^e^parately^f^r^om^each^oth^e^{r in}^s^t^ate-^lev^e^{l B}^E^A^{data. C}^a^lcu^l^ation^s^{are bas}^e^{d on}^ch^an^g^e^sⁱⁿ^em^ploy^er
^con^t^ri^bu^tⁱ^oⁿ^s^an^{d t}^o^t^a^l^pers^on^alⁱⁿ^com^e^f^o^{r 2001-}^{2002 an}^{d 2002-}^{2003 (i}^{.e., t}^h^{e t}^h^{ree y}^ears^of^dat^a
^u^s^{ed by}^H^H^S^t^o^cal^cu^l^a^t^e^F^Y²⁰⁰⁶^F^M^A^P^s⁾^.^D^u^e^t^o^BEA^revⁱ^sⁱ^on^s^,^com^p^arabl^e^{2000 dat}^a^requⁱ^r^ed
^t^o^cal^cu^l^a^t^e^2000-^{2001 ch}^an^g^e^s^{are n}^o^t^av^ai^l^a^b^l^e^.^A^s^{a res}^u^l^t^,^t^h^{e cal}^cu^l^a^tⁱ^oⁿ^s^di^s^r^eg^ard
^“^e^x^t^raordiⁿ^a^ry^{” em}^pl^oy^{er con}^t^ri^bu^tⁱ^oⁿ^sⁱⁿ^{2002 an}^{d 2003, bu}^tⁿ^o^tⁱⁿ^2001.
^{c. A}^l^as^k^a^’^s^{Medicaid FMA}^P^u^s^ed^an^altern^ativ^{e f}^o^rm^u^l^{a f}^o^{r FY2001-}^{FY2005 an}^{d w}^{ill n}^o^{t f}^a^{ll below}^its
^F^Y^{2005 l}^e^v^e^l^f^o^r^F^Y^2006-^F^Y²⁰⁰⁷^as^{a res}^u^l^t^of^D^R^A^.^Pri^o^{r t}^o^D^R^A^,^A^l^as^k^a^h^a^{d rev}^e^rt^{ed t}^o^u^sⁱⁿ^g
^t^h^{e s}^a^m^e^F^M^A^P^cal^cu^l^a^tⁱ^oⁿ^as^ot^he^{r s}^t^at^es^{, prov}ⁱ^dⁱⁿ^g^an^F^Y^{2006 F}^M^A^P^of^50.16%^an^{d F}^Y²⁰⁰⁷
^F^M^A^P^of^51.07%^.