Grassley: Stimulus Formula For Medicaid Assistance Is Biased Against States Like Iowa

Press Release

Senator Chuck Grassley said today that the economic stimulus legislation working its way through Congress to give states assistance through FMAP, the Federal Medical Assistance Percentage, or the federal government's share of state expenditures for most Medicaid services, would shortchange states like Iowa.

"The legislation is biased to big states that have high levels of unemployment. Iowans will be shortchanged when it comes to receiving the benefits that are supposed to help state governments deliver Medicaid services to people in need," Grassley said. "The House-passed bill is a worse form of it than the pending Senate bill, and both are unfair to Iowa. Our governor and state legislature are facing tough choices and difficult budget decisions because of the economic crisis, just like other states."

This week, Iowa Governor Chet Culver described a state budget plan for the coming fiscal year that cuts $580 million, and selective state cuts in the current budget of $180 million.

The Senate Finance Committee, where Grassley is Ranking Member, passed enhanced FMAP funds as part of the economic stimulus proposal it adopted Tuesday night. Grassley did not support the measure. The full Senate still must act on the proposal before it goes to a conference committee, where whatever the full Senate passes must be reconciled with legislation passed by the House.

Source