Issue Brief 23-12
October 3, 2023
Summary 

The Bureau of Economic Analysis (BEA) has released revised state personal income data for 2022 (release, interactive data). The federal government uses state per capita personal income to calculate each state’s federal reimbursement rate for Medicaid and other grants—the Federal Medical Assistance Percentage (FMAP). The Children’s Health Insurance Program (CHIP) uses an enhanced FMAP, which is higher than the Medicaid FMAP.

This BEA release allows calculation of the final fiscal year (FY) 2025 FMAPs and enhanced FMAPs, which are based on per capita incomes for calendar years (CYs) 2020-2022. These FMAP projections fully incorporate the 2020 decennial census. The personal income data incorporate significant federal COVID relief in 2020 and 2021, and the expiration or winding down of most federal relief programs in 2022.

FFIS estimates that FMAPs will increase in 13 states and decline in 27, ranging from a +1.53 percentage-point change in Alaska to a -2.85 percentage-point change in North Dakota.