State Fiscal Relief
Protecting Health Coverage in an Economic Downturn

Thank you for the opportunity to testify before the Subcommittee on Health as you consider a proposal to temporarily increase the Federal Medical Assistance Percentage (FMAP) to provide additional federal assistance to the states to cover the costs of their Medicaid programs. For the purposes of this testimony I will take it as given that the Congress wishes to provide additional support to the states and those funds can be found to do so. I will concentrate on the policy implications of the proposed method of boosting the FMAP. My position is that this is not the best approach for aiding the states and that the proposed policy will make an already flawed policy even worse. This is not in the best interests of the millions of poor and disabled Americans that the Medicaid program is intended to help.

To understand my objection to this approach, it is first necessary to look at how the FMAP system works, the incentives it creates for the states, and how the formula has affected the flow of federal funds to the states. . . .

Download file Click here to view the full text as an Adobe Acrobat PDF.

Robert B. Helms is a resident scholar at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Robert B.
Helms

What's new on AEI

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.