Murkowski Praises Extension of FMAP Matching Rate

MURKOWSKI PRAISES EXTENSION OF FMAP MATCHING RATE

PRESIDENTIAL APPROVAL ENSURES ALASKA WILL RECEIVE APPROXIMATELY $130 MILLION IN FY06 AND FYO7

Alaska Sen. Lisa Murkowski announced that the state will continue to maintain its Medicaid Assistance matching rate. Signed into law by President Bush earlier this week, S.1932, the Deficit Reduction Act of 2005, included provisions that will allow Alaska to continue to receive a higher matching rate from the federal government.

The two year extension of Alaska's Federal Medicaid Assistance Program (FMAP) rate at 57.58 percent means that the state will receive approximately an additional $130 million in federal Medicaid funding for FY06 and FY07.

"The vital federal funding provided for FMAP in the Deficit Reduction Act will greatly assist the state in meeting the healthcare needs of Alaskans," said Senator Murkowski. "Our geography and limited transportation infrastructure translate into healthcare costs that are far higher than the rest of the country. With the signing of this act into law, the Alaskans most in need will continue to receive important healthcare services and supplies."

The language included in the deficit reduction bill, originally introduced by Murkowski as free standing legislation (S.159), requires the government to recognize Alaska's higher costs of medical care when dispensing federal Medicaid funds and provides a two year extension of the higher matching rate originally obtained by the Alaska Delegation in 1997.

Calculated on the basis of per-capita income, the Medicaid formula does not take into consideration Alaska's high health care costs, which are caused principally by higher transportation costs. Alaska's health care costs are 70 percent higher than those in states in the Lower 48. Twenty percent of Alaskans are Medicaid eligible, which is significantly higher than the national average of 12 percent.

http://murkowski.senate.gov/pressapp/record.cfm?id=251461