Issue Brief 15-06
March 26, 2015

On March 25, the Bureau of Economic Analysis (BEA) released preliminary state personal income and per capita personal income data for 2014. 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 of the 2014 preliminary data permits projections of fiscal year (FY) 2017 FMAPs and enhanced FMAPs, which are based on per capita personal incomes for calendar years 2012-2014.

This Issue Brief summarizes the BEA data and provides FFIS’s estimates of the preliminary FY 2017 FMAPs and enhanced FMAPs. FFIS projects that FMAPs will increase in 19 states and decline in 17 states. However, these projections are based on preliminary data, and states have found that adjustments in the final estimates can have a large impact on their FMAPs.