50-State Survey Found that ARRA’s Increase in Medicaid FMAP Helped Many States Preserve and Even Expand Medicaid This Year—But Reversals May Come

The Kaiser Family Foundation warned in its December 8th release of its annual 50-state survey of Medicaid and the Children's Health Insurance Program states will face another crisis in Medicaid funding when the economic stimulus program ends next year (December 2010). Passed in February, the $787 billion economic recovery initiative provided $89 billion in extra Medicaid funding to states that maintained current eligibility and enrollment rules. The Kaiser foundation said that without another infusion states may scale back Medicaid to deal with budget shortfalls in the upcoming fiscal year. "If fiscal relief is not replenished and Medicaid eligibility is not protected," the report said, "many states are unlikely to withstand the pressure to make substantial cuts."