Issue Areas |
June 23, 2009June 23, 2009Missouri Budget Project State and Federal Policy UpdateJune 23, 2009In This Issue:I. Update on federal health care reform: a current snapshot I. Update on federal health care reform: a current snapshotDebate about how to achieve health care reform continues to be a high profile issues in Washington, DC. In a first “snapshot” paper on June 2, the Missouri Budget Project outlined some of the key issues being considered. The attached snapshot contains a brief overview of the proposals currently being discussed. Again, there are many unanswered questions. The paper is also available on the Missouri Budget Project web site at www.mobudget.org. The proposals in both the House and Senate are very fluid. This is only meant as a snapshot in time.Tentative time line of expected actionIn the Senate: The Senate Health, Education, Labor & Pensions Committee began mark-up of the bill last week, and may finish this week. The Senate Finance Committee expects mark-up to begin after they return from the upcoming break on July 7. In the House: Mark up of the joint bill is expected in mid-July. Each Committee will discuss its own portions of reform. The full House is expected to take up the bill before the August recess. II. Missouri Budget Project looks at fiscal year 2010The Governor is still considering what line item vetoes, if any, he will make before signing the FY2010 budget. We will share information about this as it becomes available. he Governor is still considering what line item vetoes, if any, he will make before signing the FY2010 budget. We will share information about this as it becomes available. The latest estimate from Tom Kruckemeyer, the MBP chief economist, indicates that General Revenue for FY2010 may be about $86 million in the red due to further declines in state tax revenue. FY 2010 budget vetoes and withholds close to $200 million are possible. While some capital improvements could be delayed to minimize cuts to the operating budget, line item vetoes or withholds may still be likely due to declining revenues. III. Committees appointed to further health care reform and for oversight of federal fundsPresident Pro Tem Charlie Shields recently appointed the Healthy Missourians 2020 Committee. Its members are:
This Committee is created by Senate Resolution 303 (2009), and is charged with developing long-term strategies to reign in health care costs and insure more Missourians. The Committee will dissolve December 31, 2010. Members were appointed by House and Senate leadership to the Joint Interim Committee on Oversight of Federal Stimulus and Stabilization Funds. Its members are:
The Joint Committee will hold an organizational meeting on June 29, 2009 at 10 AM at the Wainwright State Office Building in St. Louis. IV. Bonus FMAP for 4th quarter are releasedThe American Recovery and Reinvestment Act of 2009 contains provisions that increase Medicaid grants to states for 27 months. This is done by increasing the federal medical assistance percentages (FMAPS), the share of state programs paid by the federal government. Missouri’s FMAP is increased in 2 ways by the ARRA. First, all states are eligible for a 6.2 percentage point temporary increase. Second, states with high unemployment rates are eligible for an additional bonus increase. Missouri qualifies as a high unemployment state. The bonus increase can change each quarter, based on changes in the unemployment rate. Prior to the ARRA, Missouri’s FMAP was 63.19 percent. Missouri’s FMAP for the third quarter of federal fiscal year 2009 (which began October 1, 2008 and ends September 30, 2009) was 72.26 per cent. This means that of every one dollar spent on Medicaid, 72.26 cents was federal money. The estimated FMAP for the 4th quarter is 73.27 per cent. To date, Missouri has received $439 million in increased Medicaid funding from the ARRA provisions. The projected total Missouri could receive is $1.6 billion over the 27 months. Source: Federal Funds Information for States, Issue Brief 09-22, June 23, 2009 For more information regarding the issues in this update, please contact one of the MBP staff.Amy Blouin, Executive Director Ruth R. Ehresman, Director of Health & Budgetary Policy Tom Kruckemeyer, Chief Economist Heather Lasher Todd, Communications Director |
