Drop in Utah’s FMAP could mean a $37 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.

The new percentages will be in effect October 1, 2019 through September 30, 2020.

 

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In Utah, the FMAP decreased by 1.52 percent – dropping from 69.71% to 68.19%. Utah’s FMAP has been relatively stable in recent years, but the FY 2020 rates mark the biggest drop since the FY 2011 decrease.

According to the Kaiser Family Foundation, Utah’s Medicaid spending in FY 2018 totaled approximately $2.45 billion. Based on these numbers, a 1.52% FMAP drop would create a shortfall of about $37.24 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 Utah’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, Hawaii, South Carolina, Tennessee, Oregon, Vermont, and Wisconsin.

 

	FMAP (oct. 2019 - Sept. 2020)	FMAP (Oct. 2018 - Sept. 2019)	Change
Alabama	71.97	71.88	0.09
Alaska	50	50	0
American Samoa *	55	55	0
Arizona	70.02	69.81	0.21
Arkansas	71.42	70.51	0.91
California	50	50	0
Colorado	50	50	0
Connecticut	50	50	0
Delaware	57.86	57.55	0.31
District of Columbia **	70	70	0
Florida	61.47	60.87	0.6
Georgia	67.3	67.62	-0.32
Guam *	55	55	0
Hawaii	53.47	53.92	-0.45
Idaho	70.34	71.13	-0.79
Illinois	50.14	50.31	-0.17
Indiana	65.84	65.96	-0.12
Iowa	61.2	59.93	1.27
Kansas	59.16	57.1	2.06
Kentucky	71.82	71.67	0.15
Louisiana	66.86	65	1.86
Maine	63.8	64.52	-0.72
Maryland	50	50	0
Massachusetts	50	50	0
Michigan	64.06	64.45	-0.39
Minnesota	50	50	0
Mississippi	76.98	76.39	0.59
Missouri	65.65	65.4	0.25
Montana	64.78	65.54	-0.76
Nebraska	54.72	52.58	2.14
Nevada	63.93	64.87	-0.94
New Hampshire	50	50	0
New Jersey	50	50	0
New Mexico	72.71	72.26	0.45
New York	50	50	0
North Carolina	67.03	67.16	-0.13
North Dakota	50.05	50	0.05
Northern Mariana Islands *	55	55	0
Ohio	63.02	63.09	-0.07
Oklahoma	66.02	62.38	3.64
Oregon	61.23	62.56	-1.33
Pennsylvania	52.25	52.25	0
Puerto Rico *	55	55	0
Rhode Island	52.95	52.57	0.38
South Carolina	70.7	71.22	-0.52
South Dakota	57.62	56.71	0.91
Tennessee	65.21	65.87	-0.66
Texas	60.89	58.19	2.7
Utah	68.19	69.71	-1.52
Vermont	53.86	53.89	-0.03
Virgin Islands *	55	55	0
Virginia	50	50	0
Washington	50	50	0
West Virginia	74.94	74.34	0.6
Wisconsin	59.36	59.37	-0.01
Wyoming	50	50	0