Drop in Hawaii’s FMAP could mean a $10 million shortfall
On October 1, the new FY 2020 FMAP percentages kicked in, resulting in a rate reduction for 17 states. Federal Medical Assistance Percentages – or FMAP — are the percentage rates used to determine federal matching funds allocated for state medical and social services such as Medicaid and CHIP.
Last week, the new percentages became effective for October 1, 2019 through September 30, 2020.
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In Hawaii, the FMAP decreased by .45 percent – dropping from 53.92% to 53.47%. Hawaii’s FMAP has been on a steady decline in recent years after reaching 54.93% in FY 2017.
According to the Kaiser Family Foundation, Hawaii’s Medicaid spending in FY 2018 totaled approximately $2.26 billion. Based on these numbers, a .45% FMAP drop would create a shortfall of about $10.17 million that the state would now be responsible for.
A state’s FMAP is calculated based on a formula that provides higher reimbursement to states with lower per capita incomes compared to the national average. As state and national per capita incomes change, the rates at which a state receives federal matching funds also changes.
Recent trends show Hawaii’s per capita income increasing at a quicker rate than the national average, resulting in a lower FMAP.
Other states that saw a decreased FMAP last week include: Georgia, Idaho, Illinois, Indiana, Maine, Michigan, Montana, Nevada, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Utah, Vermont, and Wisconsin. A full list of the FMAP changes is available below.
|FMAP (oct. 2019 - Sept. 2020)||FMAP (Oct. 2018 - Sept. 2019)||Change|
|American Samoa *||55||55||0|
|District of Columbia **||70||70||0|
|Northern Mariana Islands *||55||55||0|
|Puerto Rico *||55||55||0|
|Virgin Islands *||55||55||0|