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Appropriators briefed on Medicaid costs, FMAP changes and human services spending
Summary
Legislative fiscal staff told the House Appropriations Committee Medicaid spending is a major driver of general fund increases, reviewed FMAP calculations and noted federal share shifts from the COVID period affect upcoming budgets.
Legislative fiscal staff told the House Appropriations Committee that Medicaid and human services are major drivers of general fund growth and that federal matching rate changes remain an important unknown for final budgets.
Alan Knudson, legislative council fiscal staff, explained how the federal medical assistance percentage (FMAP) affects state spending and described how the COVID-era enhanced FMAP phased out: "During those COVID years, the federal government played closer to 60% of Medicaid costs, but then that went away in 2023. And now we're back to our base level FMAP." He emphasized the FMAP is calculated by comparing a…
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