Summary
On March 28, the Bureau of Economic Analysis (BEA) released preliminary state personal income and per capita income data for 2016. The federal government uses state per capita income to calculate each state’s reimbursement rate—the Federal Medical Assistance Percentage (FMAP)—for Medicaid and other grant programs. The Children’s Health Insurance Program (CHIP) uses an enhanced FMAP, which is higher than the Medicaid matching rate.
The BEA release facilitates projections of fiscal year (FY) 2019 FMAPs and enhanced FMAPs, which are based on per capita incomes for calendar years 2014-2016. FFIS estimates that FMAPs will increase in 25 states and decline in 11 states. However, these projections are based on preliminary data, and subsequent adjustments can have a large impact on final FMAPs.