Final FY 2016 FMAPs
On September 30, 2014, the Bureau of Economic Analysis (BEA) released revised state personal income and per capita personal income data for 2013 as well as revisions for prior years. The federal government uses state per capita personal income to calculate each state’s reimbursement rate for Medicaid and other grant programs such as Title IV-E adoption assistance and foster care. This matching rate, calculated annually, is known as the Federal Medical Assistance Percentage (FMAP). The Children’s Health Insurance Program (CHIP) uses an enhanced FMAP, which is higher than the Medicaid matching rate.
The BEA release allows calculation of the final fiscal year (FY) 2016 FMAPs and enhanced FMAPs, which are based on per capita personal incomes for calendar years 2011-2013. Beginning in FY 2016, the Affordable Care Act (ACA, P.L. 111-148 and P.L. 111-152) increases the enhanced FMAPs for CHIP by 23 percentage points. However, ACA did not provide allotments for CHIP beyond FY 2015.
This Issue Brief summarizes the BEA data and provides FFIS’s estimates of the final FY 2016 FMAPs and enhanced FMAPs. Based on the new data, FFIS estimates that FMAPs will increase in 22 states and decline in 16 states.