Florida Losing Federal Matching Medicaid Money Because Of Post-Hurricane Economy Boom

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health
Article Date: 18 Feb 2008 - 11:00 PDT

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A surge in Florida's per capita income following several hurricanes in recent years has resulted in a decrease in federal Medicaid funds, the Miami Herald reports. Federal Medicaid distributions are calculated on a three-year average of state per capita personal income compared with national per capita income. In fiscal year 2008, Florida's share of federal Medicaid funding decreased from a 59% federal match to 57%, and it will drop again in FY 2009 to 55%, according to Carlton Snipes, acting deputy secretary for Medicaid at the Florida Agency for Health Care Administration.

State officials and the National Governors Association on Wednesday urged Florida's congressional delegation to address what the state estimates could be a $500 million budget shortfall. Matt Salo, director of health and human services for NGA, said, "Those were the boom years for a bunch of states, and now, when they need it, the states are feeling the pinch."

Rep. Kathy Castor (D-Fla.) said, "This is a significant loss of revenue that could affect the disabled, nursing home residents, mothers and children." She added that the House leadership has shown interest in addressing the issue. In a letter to House Speaker Nancy Pelosi (D-Calif.), Castor wrote, "Seven hurricanes in two years ... and subsequent reconstruction activity are skewing the Florida (Medicaid) formula," adding, "This anomaly has resulted in significant projected reductions in health services to Florida's neediest residents" (Clark, Miami Herald, 2/14).

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