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Financing Medicaid Coverage Under Health Reform: What is in the Law and the New FMAP Rules

This brief examines the ACA law and new regulations related to the match rates for coverage under the ACA for Medicaid and Children’s Health Insurance Program. Under the ACA, the federal government will finance 100% of the costs of those newly eligible for Medicaid from 2014 through 2016 and then the federal contribution phases down to 90 percent by 2020 and beyond. States would continue to pay the traditional Medicaid match rate for increased participation among those currently eligible. Final regulations issued on April 2, 2013 specify the process by which states identify enrollees for the applicable match rate.