Kaiser Family Foundation October 14, 2020
Robin Rudowitz, Elizabeth Hinton, Madeline Guth, Lina Stolyar

Key Takeaways

The coronavirus pandemic has generated both a public health crisis and an economic crisis, with major implications for Medicaid, a countercyclical program. During economic downturns, more people enroll in Medicaid, increasing program spending at the same time state tax revenues may be falling. To help both support Medicaid and provide broad fiscal relief as revenues have declined precipitously, the Families First Coronavirus Response Act (FFCRA) authorized a 6.2 percentage point increase in the federal match rate (“FMAP”) (retroactive to January 1, 2020) available if states meet certain “maintenance of eligibility” (MOE) requirements. The health and economic consequences of the pandemic as well as the temporary FMAP increase were major drivers of Medicaid enrollment and spending trends as states...

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