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
Alabama71.9771.880.09
Alaska50500
American Samoa *55550
Arizona70.0269.810.21
Arkansas71.4270.510.91
California50500
Colorado50500
Connecticut50500
Delaware57.8657.550.31
District of Columbia **70700
Florida61.4760.870.6
Georgia67.367.62-0.32
Guam *55550
Hawaii53.4753.92-0.45
Idaho70.3471.13-0.79
Illinois50.1450.31-0.17
Indiana65.8465.96-0.12
Iowa61.259.931.27
Kansas59.1657.12.06
Kentucky71.8271.670.15
Louisiana66.86651.86
Maine63.864.52-0.72
Maryland50500
Massachusetts50500
Michigan64.0664.45-0.39
Minnesota50500
Mississippi76.9876.390.59
Missouri65.6565.40.25
Montana64.7865.54-0.76
Nebraska54.7252.582.14
Nevada63.9364.87-0.94
New Hampshire50500
New Jersey50500
New Mexico72.7172.260.45
New York50500
North Carolina67.0367.16-0.13
North Dakota50.05500.05
Northern Mariana Islands *55550
Ohio63.0263.09-0.07
Oklahoma66.0262.383.64
Oregon61.2362.56-1.33
Pennsylvania52.2552.250
Puerto Rico *55550
Rhode Island52.9552.570.38
South Carolina70.771.22-0.52
South Dakota57.6256.710.91
Tennessee65.2165.87-0.66
Texas60.8958.192.7
Utah68.1969.71-1.52
Vermont53.8653.89-0.03
Virgin Islands *55550
Virginia50500
Washington50500
West Virginia74.9474.340.6
Wisconsin59.3659.37-0.01
Wyoming50500