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February 3, 2010
Contact U.S. Senators Durbin and Burris: Urge them to Support Inclusion
Extension of Temporary FMAP Increase in Senate Jobs Bill
President Obama this week released his FY 2011 budget proposal, including a
request of $25.5 billion for a six-month extension of the increase in Medicaid’s
federal medical assistance percentage (FMAP) (see a summary of his budget
proposal below). The inclusion of the FMAP extension in the President’s budget
as well as in the U.S. House jobs bill present the hospital community with a
prime opportunity to aggressively push for the extension. But we need to make
sure that the Senate also includes the extension in its version of the jobs
bill.
The U.S. House passed its version of the "jobs" bill in December, including a
provision to extend through June 30, 2011, the economic stimulus law’s temporary
FMAP increase. The U.S. Senate is expected to announce its approach to jobs
legislation later this week, which may involve moving multiple bills rather than
one comprehensive package, in an effort to ensure that at least some of their
priorities can pass.
Action Requested:
Contact Senators Durbin and Burris and ask them to support including a
six-month extension of the FMAP increase in the Senate jobs bill. To send an
e-mail message,
click here. With Senate moving on its jobs bill expected this week,
we urge you to take immediate action.
Key Points:
The current temporary FMAP increase has raised Illinois’ federal
Medicaid matching rate from 50% to nearly 62%, greatly helping our state’s
Medicaid program weather the added pressures of a serious economic downturn
and increased numbers of Medicaid patients.
Extending the temporary FMAP increase for 6 months would mean
approximately $700 million in additional Medicaid funding for Illinois.
With hospitals also serving as vital economic engines for the local and
state economies, the additional Medicaid dollars will help in many ways:
Hospitals are among the top three employers in nearly half of the
state’s counties, together employing nearly a quarter of a million
people;
As major employers and major purchasers of goods and services, they
have an economic impact on the state of $72 billion a year; and
Medicaid payments to hospitals generate immediate economic stimulus
– generating new rounds of spending (and tax revenues) as well as job
creation and retention throughout the local and state economies. Each $1
in Illinois Medicaid spending generates another $2.50 in further
economic activity.
Summary of President’s FY 2011 Budget Proposal
President Obama kicked off the Fiscal Year (FY) 2011 budget process with
the Feb. 1 unveiling of his administration’s $3.8 trillion FY 2011 budget
proposal. Rather than including specific proposals, the President’s budget
includes a "placeholder" for health care reform. It appears that there are no
additional Medicare program cuts for FY 2011. In addition, it is indicated that
the President will propose the formation of a commission to balance the budget
beginning in 2015 – including cuts to Medicare and Medicaid spending. These cuts
would be in addition to any cuts already proposed in the budget.
The following highlights certain key budget provisions:
Medicaid: Illinois would receive approximately $7.9 billion to provide
health coverage to low-income children and families, $700 million of which
would come from extending the FMAP provisions included in the American
Reinvestment and Recovery Act of 2009 (ARRA) for an additional six
months – through June 30, 2011.
Physician Payment: Allocates $371 billion (nationally) over 10 years
to provide a zero percent increase in Medicare physician payments, thereby
eliminating future cuts.
Rural Programs: Includes $79 million (nationally) in funding for
rural programs to increase the number of providers and strengthen
partnerships among providers.
Program Integrity: Allocates $1.7 billion (nationally) including an
increase of $250 million in Health Care Fraud and Abuse Control
discretionary funding; coupled with proposed legislative and administrative
changes, these measures are projected to produce $14.7 billion in Medicare
and Medicaid savings over 10 years.
COBRA: Extends premium assistance included in the ARRA for 12
months. (The current provision expires February 28, 2010.)
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