To achieve federal budget savings called for by the deficit reduction legislation, one proposal would make across-the-board cuts to federal matching funds (FMAP). Such cuts would be accomplished by blending various matching rates provided to states for different Medicaid services and populations into a single rate. Savings are then achieved by lowering the single rate by a set percentage, which decreases the federal share. This proposal simply shifts costs onto states and could further pass those costs to providers and beneficiaries. It also establishes a precedent for the federal government to provide less Medicaid funding to states at times when it wants to save money. NAPH members can find more information about this issue in the talking points provided below as we work to educate members of Congress on this important issue. Continue Reading