Health
Senate Passes UCP-Supported Amendment to Increase Federal Medicaid and Social-Service Funding
On July 25, the Senate approved by voice vote a bipartisan UCP-supported amendment (S. Amdt. 4316) to a generic-pharmaceuticals bill (S. 812) that would increase federal Medicaid funding by $6 Billion, and other health and social-service funding by $3 Billion over 18 months. This amendment passed after winning - by a 75 to 24 vote - a procedural challenge because the amendment would increase the federal deficit.
UCP played an active role in the coalition of governors, state legislators, service providers, and low-income and disability groups that urged passage of the plan. The underlying pharmaceutical bill must still be approved by the Senate and a similar funding proposal must also be approved by the House of Representatives, where a UCP-endorsed Medicaid funding plan (H.R. 3414) is sponsored by 148 of the 435 members. The Senate will finalize action on the generic drug bill in either late July or early September, but it is unclear whether or when the House will consider this issue.
The added Medicaid funds are in the form of an increase in the Federal Medical Assistance Percentage (FMAP), the share of each state’s total Medicaid spending that is paid by the federal government. The added social-service funds would be administered through the Social Services Block Grant (SSBG), also known as Title XX. SSBG would be used as a convenient conduit but the $3 Billion would not have to meet all the rules applicable regular SSBG funding.
This plan would help reverse states’ recent Medicaid and social-service cuts and prevent future cuts. States are facing cuts because the recession has created greater need for these services at the same time as state tax revenues have fallen.