Medicaid: Extending the Enhanced Federal Match Makes Sense

Journal Article

Medicaid: Extending the Enhanced Federal Match Makes Sense

July 11, 2011

Abstract

As of July 1, 2011, the higher matching rates that states have received from the federal government because of the severe recession came to an end. The likely result is a reduction in benefits and provider payments or an increase in taxes, or both. Either action would have adverse effects on the U.S. economic recovery. In this editorial, Judy Feder and John Holahan argue that enhanced matching rates should be continued. In the interest of long-run debt reduction, these extra federal payments should be budget neutral to federal government over a period of years. That is, when the economy recovers, federal matching rates would be reduced to make up for the higher federal payments in the near term.

Research Area: 

Centers

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

LATEST IN Health and Health Policy

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.