HHS: Partial Medicaid Expansions Will Not Receive 100% Federal Funding

Today, HHS announced (pdf) it will not consider phased-in or partial Medicaid expansions, under the Patient Protection and Affordable Care Act. Instead, states will have to expand Medicaid fully to 133 percent of the federal poverty limit to receive 100 percent federal match funds.

The news comes as several Republican governors, such as Oklahoma's Mary Fallin and Mississippi's Phil Bryant, said they will not expand Medicaid under the healthcare law. From 2014 though 2016, states can expand their Medicaid programs to 133 percent of the FPL, and the federal government will cover all costs. By 2020, the feds' share will drop to 90 percent.

The announcement did say, however, that "if a state that declines to expand coverage to 133 percent of FPL would like to propose a demonstration that includes a partial expansion, we would consider such a proposal to the extent that it furthers the purposes of the program, subject to the regular federal matching rate."

HHS Secretary Kathleen Sebelius, also the former governor of Kansas, wrote a blog post mentioning how six states — Colorado, Connecticut, Massachusetts, Maryland, Oregon and Washington — have received early approval to begin setting up their own health insurance exchanges.

More Articles on Medicaid Expansion:

Missouri Governor Supports Medicaid Expansion

Finding Value in Your Organization: Q&A With Baylor Health CFO Fred Savelsbergh

Medicaid Costs Would Be Only Slightly Higher With Expansion, Study Says

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