While there hasn't been much good news coming out of
Washington lately on the health care front, the President's newly released
FY 2011 budget offers some positive developments.
Most notably, the budget proposes $25.5 billion to extend
the temporary FMAP increase for another six months, through June 2011. The FMAP
increase and its accompanying maintenance of effort provision, which was
included in last year's stimulus bill (ARRA), has been an incredibly important
way to help states maintain their Medicaid programs during an economic
downturn. Set to expire at the end of the calendar year (which is right in the
middle of states' fiscal year), the Administration's proposed extension would
provide critical relief to cash-strapped states. Since the budget extends the
recovery act provision, states would still need to maintain Medicaid
eligibility and enrollment/renewal procedures to receive the increased FMAP.
The budget also assumes savings from health reform, signifying the President's continued commitment to passing a bill. Using the average of the savings estimated under the House and Senate bills, the budget projects roughly $150 billion in savings over 10 years.
The budget also proposes:
* Extending, through the end of 2010, the COBRA health
insurance premium assistance program established under the recovery act (set to
expire at the end of this month).
* Providing an additional $290 million for community health care
centers, $110 million for continuing investments in health IT, and an increase of $250 million for Medicare, Medicaid, and CHIP fraud and abuse
initiatives.
* Allocating funding to strengthen rural health care,
expand Indian health services, increase wellness and prevention activities, and
conduct research on the comparative effectiveness of medical options.
* Establishing Medicaid and Medicare demonstration
projects to coordinate care and lower costs for seniors and those with chronic
conditions.
Also of note is a 229% increase in state Medicaid
performance bonus payments. This change reflects the Administration's
expectation that states will continue to enroll more children in Medicaid,
resulting in an increase from $73 million in FY 2010 to $240 million in FY 2011
in payments made to states.
The President proposed a couple of measures that could
impact programs for low-income families moving forward. This includes a 3-year non-security discretionary spending freeze
(although Medicaid, CHIP, and most health programs were excluded) and the creation of a
bi-partisan fiscal committee, which is charged with, among other things,
addressing the growth of entitlement spending.
Expect to hear more from us in the coming months as
Congress begins its work to have a final budget signed by the President by
October 1.
By 
It is great to see the President has proposed extending the increased FMAP to help Medicaid programs. Is it certain under his budget proposal that the extension of increased FMAP in the 2011 budget includes the current criteria for states accepting the increased FMAP of maintaining Medicaid programs at their current levels and not raising premiums etc?
Thank you.
Donna Sutton Fay
Vermont Campaign for Health Care Security Education Fund
Hi Donna: We agree that the increased FMAP will be a critical resource for states! Our understanding is that they are definitely intending to continue MOE. We will keep you posted as it moves forward.
I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.
Rather superb entry, definitely useful stuff. Never ever considered I'd find the facts I need right here. I have been looking everywhere in the internet for some time now and had been starting to get discouraged. Fortunately, I happened across your blog and received precisely what I was searching for.
I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me to start my own blog now. Really the blogging is spreading its wings rapidly. Your write up is a fine example of it.
Hello, I have browsed most of your posts. This post is probably where I got the most useful information for my research. Thanks for posting, maybe we can see more on this. Are you aware of any other websites on this subject
Health is wealth they say but how can we maintain that healthy life style is what seems to be the most difficult thing that people are really confused about, in living healthy the kind of food we eat ,matters a lot if you eat more fruits than junk food or a well balanced diet packed with daily exercise and regular water intake one will definitely achieve that aim.
It is great to see the President has proposed extending the increased FMAP to help Medicaid programs.
I have you bookmarked to check out new stuff you post.
Thanks for sharing.
Thanks for sharing this great article! That is very interesting I love reading and I am always searching for informative information like this.
It is big issue of how to we proper care of child? I liked to read this article and i got answer of my question.thanks