The local match prepayment amount is a percentage of the total amount paid for claims submitted. The percentage is determined by the local match rate. Use the rates listed here, based on the claim's payment date.
The Federal Medical Assistance Percentage (FMAP) rates determine how much the local match rate will be.
Questions and Answers about FMAP and Local Match Rates
|What is the FMAP?|
The FMAP is the federal government’s share of expenditures for the Medicaid and Children’s Health Insurance Program (CHIP) programs. These programs are jointly funded by the federal, state or local government.
The FMAP determines the local match rate.
|When does the FMAP change?|
Generally, the FMAP changes annually on October 1 (the beginning of the federal fiscal year).
The American Recovery and Reinvestment Act of 2009 (ARRA, Public Law 111-5
) contained provisions that increased Medicaid FMAP rates and the frequency of FMAP changes.
· ARRA increased Medicaid FMAPs from October 1, 2008 – December 31, 2010, through a hold-harmless provision, a 6.2 percentage-point across-the-board increase, and a bonus adjustment related to the change in a state’s unemployment rate. Because the bonus could change each quarter, the FMAP rates were calculated on a quarterly basis.
· Public Law 111-226, enacted in August 2010, provided a two-quarter phased-down extension of the increased FMAP included in ARRA, from January 1, 2011-June 30, 2011.
The annual FMAP schedule resumed Oct. 1, 2011.
|When is the local match rates table updated?|
Approximately one month prior to the start of a new federal fiscal year, the DHS | OHA Budget Planning and Analysis Unit (BPA) receives new rates from the Federal Funds Information for States
DMAP updates the local match rates table with the new rates once BPA verifies them and distributes them to DHS|OHA staff.