Governor Awards FMAP Funds to Hospitals, Mental Health, Others
Governor Ted Strickland yesterday issued a news release detailing his decisions about spending part of the $518.6 million in additional federal funding that will be flowing to Ohio this fiscal year. The increased money results from Congressional action extending a higher Federal Medical Assistance Percentage (FMAP) through June 30, 2011. These allocations – which technically are made up of state funds that would have been used for Medicaid but are supplanted by the added federal funding - will be implemented administratively and do not require legislative action. Hospitals are the biggest beneficiaries, as they will receive increased Medicaid reimbursement totaling $150 million. Community mental health agencies will receive $32.6 million and an HIV/AIDS program $12.8 million. An additional $73.3 million will be distributed to the state agencies other than the Ohio Department of Job and Family Services that administer components of the Medicaid program, apparently to use as they see fit. The fact that these allocations can be made without legislative approval apparently was a significant factor in the spending decisions, as Senate President Bill Harris immediately chastised the Governor for spending money in the face of the anticipated budget shortfall for the next biennium. OHCA has been advocating strongly to use some of the enhanced FMAP dollars to reduce the skilled nursing facility franchise fee and to address reimbursement problems for ICFs/MR, but those changes would take legislation. If you have questions, please contact , 614-436-4154