Relief is in sight for Americans in need of health care coverage. Access to the first two quarters of Federal Medical Assistance Percentage funding (FMAP) will be available this week.
The announcement was made by President Barack Obama during a meeting of the nation’s governors at the White House on Monday.
FMAP is the federal match for Medicare. The first installment of more than $15 billion included in the American Recovery and Reinvestment Act will be available to States on Feb. 25.
According to Obama, access to FMAP is set to “help you cover the costs of your Medicaid programs.”
“This plan will also help ensure that you don’t need to make cuts to essential services Americans rely on now more than ever,” Obama said in a White House press release.
“That means that by the time most of you get home; money will be waiting to help 20 million vulnerable Americans in your states keep their health coverage. Children with asthma will be able to breathe easier, seniors won’t need to fear losing their doctors, and pregnant women with limited means won’t need to worry about the health of their babies,” he said.
The more than $15 billion will be divided among each U.S. State and territory. New York will receive the largest amount of more than $2.07 billion. California will receive the second largest amount of more than $1.99 billion, says a U.S. Department of Health & Human Services summary.
During the meeting, Obama also announced Vice President Joe Biden will oversee the Administration’s implementation of the Recovery Act’s provisions.
“Beginning this week, Vice President Biden will meet regularly with key members of my cabinet to make sure our efforts are not just swift, but efficient and effective. He’ll also work closely with our nation’s Governors, and our Mayors, and everyone else involved in this effort, to keep things on track,” Obama said.
“The fact that I am asking the Vice President to personally lead this effort shows how important it is for our country and our future to get this right, and I thank him for his willingness to take on this critical task,” he said.
Obama also announced the appointment of Interior Department Inspector General Earl Devaney as chairman of the Recovery Act Transparency and Accountability Board.
Through access to FMAP, a total amount of $15,205,235,821 will be divided among U.S. States.
U.S. Territories, such as Puerto Rico, the Virgin Islands, and Guam will share a total of $41,586,812.
The way the money is divided is determined by each state’s per capita income, relative to U.S. per capita income. States with lower incomes receive higher reimbursement, according to a 2008 Report to Congress on FMAP from the Congressional Research Service.
Similar relief has been given in the past. On May 28, 2003, ex-President George Bush signed the Jobs and Growth Tax Relief Reconciliation Act of 2003. It gave a combination of $10 billion in FMAP increases and $10 billion in direct grants to help states and local governments. Some evacuees from Hurricane Katrina also received similar relief.
