Health Care For America Now

Proposed legislation would give 50 states and DC $849 billion in new federal funding for health coverage with minimal match; State-by- state charts break down flow of much-needed funds

***Read the Report: HealthCareForAmericaNow.org/CriticalHelp***

Washington, DC – A new report released today by Health Care for America Now (HCAN) - the nation’s largest health care campaign - shows that passing the current Democratic health care reform proposals will give residents and governments in all 50 states and DC hundreds of billions of dollars in much-needed funds.  A total of $849 billion will flow to the states, with $460 billion allocated to help families afford private health insurance coverage and $389 billion to supplement state Medicaid programs, according to a state-by-state analysis of pending legislation. This report does not include the impact of the President’s Proposal for additional Medicaid funds to the states and increased affordability credits, all of which further enhance the impact described in the report.

In return for this new injection of money, states will be required to provide a modest match estimated to equal 3.1 percent of the new federal funds. In comparison, states customarily match federal Medicaid dollars at an average rate of 43 percent. Under the pending federal legislation, for low- and moderate-income residents receiving assistance for private health insurance coverage, no state match is required. For those gaining health insurance coverage under the expanded Medicaid eligibility, the federal contribution for these costs would average 90 percent by 2019.

How much each state receives will depend on the number of people eligible for Medicaid and the number of people who qualify for private health insurance. For instance, from 2009 to 2019, the Senate health reform bill would direct $87.4 billion to Texas, the state with the highest uninsured rate, and $1.6 billion to Wyoming, the least populous state.

The report titled “Federal Health Reform Provides Critical Long-Term Help to States” also takes a look at the $87.7 billion currently flowing to the states through the American Recovery and Reinvestment Act of 2009 and the additional relief the House-passed jobs bill now pending in the Senate would provide. These two short-term sources of funding – together with pending health care reform proposals – would inject a total of $960 billion in federal assistance into state economies over 10 years and result in a net reduction in state Medicaid spending of $85 billion over the 2009 to 2019 period.

“We are paving a path for economic recovery, and finishing comprehensive health care reform will be an integral part of helping our states balance their budgets without the kind of draconian Medicaid cuts many states are considering,” said Richard Kirsch, HCAN’s National Campaign Manager. “With reform, states will see a reduction in the number of uninsured, and at the same time, they will receive new funds that will help relieve the budgetary burdens many are struggling with today. This report proves the stimulus bill, the jobs bill, and comprehensive health care reform are the right prescription for relieving growing state budget pressures over the next decade.”