Incentivizing Medicaid Expansion Act of 2021

Incentivizing Medicaid Expansion Act of 2021

This bill provides an enhanced federal matching rate to every state that expands Medicaid coverage for individuals who are newly eligible under the Patient Protection and Affordable Care Act, regardless of when such expansion takes place.

Under current law, the enhanced Federal Medical Assistance Percentage (FMAP) is equivalent to 100% in 2014 through 2016, 95% in 2017, 94% in 2018, 93% in 2019, and 90% thereafter. The bill retains this enhanced FMAP, but bases it on a term of years rather than on specific dates.

The bill applies retroactively.

Bill 117 hr 340, also known as the Incentivizing Medicaid Expansion Act of 2021, aims to encourage states to expand their Medicaid programs by providing financial incentives. The bill proposes that states that choose to expand Medicaid eligibility to cover individuals with incomes up to 138% of the federal poverty level will receive an enhanced federal matching rate for their Medicaid program.

The enhanced federal matching rate would gradually increase over a period of five years, ultimately reaching 100% for states that fully expand their Medicaid programs. This means that the federal government would cover the full cost of providing Medicaid coverage to newly eligible individuals in these states.

The bill also includes provisions to ensure that states that have already expanded Medicaid eligibility will not lose their enhanced federal matching rate if they choose to maintain their current eligibility levels. Additionally, the bill includes measures to streamline the process for states to apply for and receive the enhanced federal matching rate. Overall, the Incentivizing Medicaid Expansion Act of 2021 seeks to make it more financially feasible for states to expand their Medicaid programs, thereby increasing access to healthcare for low-income individuals and families.