HR1185 98TH GENERAL ASSEMBLY

HR1185 LRB098 21621 MST 60435 r

HOUSE RESOLUTION

WHEREAS, Medicaid is an entitlement program that provides healthcare coverage for low income children, adults, adults with disabilities, and seniors; and

WHEREAS, Medicaid is jointly funded between the states and the federal government; and

WHEREAS, The federal participation to state Medicaid programs is based upon 2 factors - the amount the state spends on Medicaid matchable services and the state's individual Federal Medical Assistance Percentage (FMAP); and

WHEREAS, The FMAP is calculated by the federal government each year through administrative rule, via a formula that considers the average per capita income for that state relative to the national average; and

WHEREAS, The FMAP cannot be less than 50% or more than 83% for federal Medicaid reimbursements to states; and

WHEREAS, Illinois has historically been among the lowest reimbursed FMAP states at the 50% rate; and

WHEREAS, Only in 2014 will Illinois receive a slight adjustment to the FMAP rate with an effective reimbursement rate of 50.76%; and

WHEREAS, Illinois is one of only 22 states with an FMAP less than 54% and only one of 13 states with an FMAP of less than 51%; 7 states have an FMAP rate of 70% or more; and

WHEREAS, All of the contiguous states surrounding Illinois have a higher FMAP reimbursement rate for Medicaid - between 5% and 19% higher; and

WHEREAS, Other states with low relative FMAP reimbursements include New York, New Jersey, California, Connecticut, Maryland, and Virginia; these states are similar to Illinois with proximity to a large metropolitan area; and

WHEREAS, Concerns have been raised that the FMAP formula fails to take into account the total number of Medicaid eligible residents which may live in an area with a large metropolitan area and is slow to reflect current economic conditions present in a state; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-EIGHTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the federal government to revisit the formula used to calculate the Federal Medical Assistance Percentage with variables which take into account the total number of low income residents in a state and variables which represent a timely reflection of economic conditions in a state; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the U.S. Secretary of Health and Human Services.