Supporting extension of Federal Medical Assistance Percentage rates (Rep. Raul Grijalva)

FMAP has provided stability to states at a time when Medicaid rolls and budget deficits are swelling because of the deep recession.  Budget shortfalls force states to lay off workers, slash critical programs and raise taxes.  The ripple effect carries down to businesses and working families.   Estimates emerging show that without additional funding, state budget actions could cost the economy 900,000 public- and private-sector jobs. Can we afford this?

The non-renewal of the enhanced matching rate would have a dramatic impact on crucial health programs, such as access to mental health services. With continued budget-cutting, mental health care in our nation is dependent on Medicaid funding. A reduction in available mental health services is linked to increased hospitalizations, homelessness, broken families and utilization of police, courts and jails.

Opposing the extension of FMAP rates to states because it will add to the deficit is misguided. The most important thing to do right now is to get our economy back on its feet to avoid making our long-term deficit problem worse. With state budgets in crisis due to depleted tax revenues and increased demand for services, the FMAP extension provides crucial fiscal relief that is needed to fend off further devastation.