Critical Funding Helps States with Budget Shortfalls

February 2, 2010

Washington, DC -- Nevada Senator Harry Reid and West Virginia Senator Jay Rockefeller are working on legislation that would extend by six months the increase in the Federal Medical Assistance Percentage (FMAP) that states currently receive from the American Recovery and Reinvestment Act (ARRA).  In addition to ensuring coverage for children, parents, seniors, and people with disabilities, this extended funding will help states like Nevada and West Virginia retain employees and relieve state funding shortfalls. The legislation will be introduced this week.

“More than 160,000 Nevadans rely on Medicaid for access to affordable, quality medical care and this extension will go a long way toward helping the state of Nevada maintain those services,” Reid said.  “In addition to helping people who need it, this funding will provide six months of relief while we continue our work to strengthen our state’s economy.”

“We absolutely need this six months of relief while we weather this economic storm – too many families depend on this program for us to allow a shortfall of funding,” said Senator Rockefeller, Chairman of the Senate Finance Subcommittee on Health Care. “Medicaid is a significant economic generator in West Virginia, paying almost 20 percent of the total cost of West Virginia’s health care system and supporting an estimated 19,800 jobs in the state while providing essential health care coverage for the 390,000 West Virginians who currently rely on Medicaid each year.”