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David_morales Posted by: David Morales, Commissioner, Division of Health Care Finance and Policy

Today, federal legislation that extends "FMAP" funding was delayed. Federal Medical Assistance Percentages (FMAP) are used to determine the amount of "Federal matching funds" each State will receive for assistance in making payments for State social service, medical, and medical insurance expenditures. Needless to say, FMAP funding – which is worth billions of dollars in Massachusetts – is vital to our State's education, human services, and public safety infrastructure. 

So, why should you care about whether Congress extends this funding to our Commonwealth? Here are some reasons:

  • Health & Human Services projects that the FMAP extension is worth at least $609 million in additional federal reimbursements for the next fiscal year 
  • FMAP funds help to ensure that we protect vital state services during this global economic recession 
  • Funding cuts will have negative impacts on our health care reform efforts 
  • If FMAP funds are not extended, the State will have to cut over $700 million from next fiscal year's budget, possibly resulting in immediate and painful loss of jobs and state services for Massachusetts families and businesses 

With the start of a new fiscal year on July 1, states like Massachusetts are working hard to balance next year's budget. As we continue to climb out of the recession, receiving FMAP funds and mitigating additional budget cuts will help strengthen our economic position. 

This is an important issue that requires all of our attention.

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