Daily Rules, Proposed Rules, and Notices of the Federal Government
Section 5001 of the ARRA specifies that the FMAP shall be temporarily increased for the following: (1) A maintenance of FMAP for fiscal year 2009, fiscal year 2010, and first quarter of fiscal year 2011, determined by substituting the greater of such percentage for the State compared to the FMAP calculated for the prior fiscal year; (2) the application of an increase in each state's FMAP of 6.2 percentage points; and (3) an additional percent increase based on the state's increase in unemployment. Each state's FMAP will be recalculated each fiscal quarter beginning October 2008.
Payments eligible for FMAP under title XIX, except disproportionate share hospital and enhanced FMAP payments, shall receive the 6.2 percentage point increase and any unemployment adjustment. Payments under part E of title IV shall only receive the 6.2 percentage point increase.
The unemployment increase percentage for a calendar quarter is equal to the number of percentage points (if any) by which the average monthly unemployment rate for the State in the most recent previous 3-consecutive-month period for which data are available exceeds the lowest average monthly unemployment rate for the State for any 3-consecutive-month period beginning on or after January 1, 2006. A State qualifies for additional relief based on an increase in unemployment if that State's unemployment increase percentage is at least 1.5 percentage points.
In addition to the general 6.2 percentage point increase in FMAP, the FMAP for each qualifying State is increased by the number of percentage points equal to the product of the State percentage calculated from half the 6.2 percentage point increase in FMAP and the applicable percent determined from the State unemployment increase percentage for the quarter. The applicable percent is (1) 5.5 percent if the State unemployment increase percentage is at least 1.5 percentage points but less than 2.5 percentage points, (2) 8.5 percent if the State unemployment increase percentage is at least 2.5 percentage points but less than 3.5 percentage points, and (3) 11.5 percent if the State unemployment increase percentage is at least 3.5 percentage points.
If the applicable percent applied to a State is less than the applicable percent applied for the preceding quarter, then the higher applicable percent shall continue in effect for any calendar quarter beginning on January 1, 2009 and ending before July 1, 2010.
Territories (Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and America Samoa) can make a one-time election between (1) a 30 percent increase in their cap on Medicaid payments (as determined under subsections (f) and (g) of section 1108 of the Social Security Act), or (2) apply the increase of 6.2 percentage points in the FMAP plus a 15 percent increase in cap on Medicaid payments.
In no case shall an increase in FMAP under this section result in an FMAP that exceeds 100 percent.