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Division III proposes phased repayment to counties of unallocated FMAP funds, temporary 1% county cap increase
Summary
Committee leaders proposed repaying counties for federal Medicaid FMAP distributions that were retained at the state level during an early COVID-era FMAP enhancement, splitting approximately $22.5 million into four payments and adding an exigent one-percentage-point county cap premium that would expire at the end of the biennium.
Division III members discussed restoring federal Medicaid FMAP-related money counties say the state retained during the first six months of an enhanced FMAP allocation. Committee staff reported the disputed amount is about $22.5 million; rather than a lump-sum payment, county representatives agreed in hallway talks to accept the sum in four equal installments spread across two budget years.
Under the proposal, counties would receive four payments of…
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