FMAP Update: Guidance on COVID-19 Increase; FY 2022 FMAP Projections

This Issue Brief covers two recent developments related to each state’s federal reimbursement rate—the Federal Medical Assistance Percentage (FMAP)—for Medicaid and other grant programs:

1. The Centers for Medicare & Medicaid Services (CMS) provided guidance on the temporary 6.2 percentage-point increase in FMAP, including the effective date, applicable programs/expenditures, and requirements.
2. The Bureau of Economic Analysis (BEA) released preliminary state personal income data for 2019. The data facilitates projections of fiscal year (FY) 2022 FMAPs and enhanced FMAPs, which are based on per capita incomes for calendar years (CYs) 2017-2019. These projections are based on preliminary data, and subsequent adjustments can have a large impact on final FMAPs.  

Note: Brief updated on 4/16 based on additional guidance from CMS that indicates the 6.2 percentage-point increase will apply to the temporary FMAP increases for Puerto Rico and the territories included in FY 2020 appropriations.