NM Eligible for $95 Million+ in Medicaid Relief; Funds Available Starting Wednesday

President Barack Obama announced in a meeting with the nation’s Governors today that states will be able to access the first two quarters of Federal Medical Assistance Percentage funding (FMAP) – the federal match for Medicaid – starting this Wednesday, February 25. FMAP funding helps pay for health care for the families hit hard by the economic crisis and some of the nation’s most vulnerable citizens. More than 49 million Americans rely on Medicaid for health care coverage and this funding could help 20 million more Americans get covered.

According to a statement released by the White House, New Mexico will be eligible for $95,239,707 under the bill. A chart detailing funding by state can be found HERE.

The extra money is the result of language in the stimulus bill creating an enhanced but temporary federal "match" for Medicaid. The measure potentially frees up money states can use for other purposes at a time when the economy is hurting. President Obama made it clear that he wants the funding used to avoid service cuts in the states.

“This plan will also help ensure that you don’t need to make cuts to essential services Americans rely on now more than ever,” the President told the Nation’s Governors at today's meeting at the White House. “To show you we’re serious about putting this recovery plan into action swiftly, I am announcing today that this Wednesday, our administration will begin distributing more than $15 billion in federal assistance under the Recovery Act to help you cover the costs of your Medicaid programs.”

"That means that by the time most of you get home, money will be waiting to help 20 million vulnerable Americans in your states get health coverage. Children with asthma will be able to breathe easier, seniors won’t need to fear losing their doctors, and pregnant women with limited means won’t need to worry about the health of their babies.”

Beginning Wednesday, February 25, the first installment of more than $15 billion included in the American Recovery and Reinvestment Act will be available to States.

The first two quarters of FY 2009 funding for states has been set up in special Treasury accounts so that states, the District of Columbia, and the territories can start drawing down on those funds. This special, temporary increase in funding will be administered by the Department of Health and Human Services’ Centers for Medicare & Medicaid Services (CMS).

States will need to meet Medicaid eligibility requirements outlined in the law to receive the new funding. CMS will be working with the States to ensure they meet the requirements as long as they wish to access the increased in Medicaid funding.