As Congress considers cuts to Medicaid spending, one proposal is to reduce the enhanced Federal Medical Assistance Percentage (FMAP), or the federal matching rate states receive for the expansion population covered under the Affordable Care Act.
Using Urban’s Health Insurance Policy Simulation Model, researchers estimate the state budget harms and coverage losses that could result from reducing the FMAP expansion. They find that reducing federal support for Medicaid expansion would shift costs to states and likely result in coverage loss.
