Federal Medicaid matching rate to decline in 2014

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About 30 states can expect a drop in federal matching rates for Medicaid in fiscal year 2014, with only a handful seeing an increase, according to a new report.

The decrease in the federal matching rate (FMAP) is unusual in that it reflects extremely slow growth between 2010 and 2011, according to the report, conducted by the National Association of Medicaid Directors. Federal spending for Medicaid FMAPs in 2014 is expected to dip by an amount ranging from $903 million to $1.7 billion, the report said. It's estimated between four and seven states will see an increase in FY 2014, including Arizona, Florida and Nevada.

Nursing homes rely heavily on funding for Medicaid, which offers health coverage for low-income elderly and disabled individuals.

The planned expansion of Medicaid in 2014 under the Affordable Care Act could contribute to the low numbers, the report states. It warns that the expansion “could cause financial and program disruptions.”

Click here to read the full report.

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