Federal Gov't. Will Pay 100 Percent of Medicaid Costs for Certain Newly Eligible Individuals

On Friday, the Department of Health and Human Services, of which CMS is a division, announced that the federal government will pay 100 percent of the Medicaid costs for certain newly eligible beneficiaries as part of the Affordable Care Act (ACA).

The 100 percent funding will only last through 2016, when it will gradually begin to decrease. By 2020, it will be at a permanent 90 percent.

Under the Affordable Care Act, states were given the option of expanding Medicaid coverage to people under the age of 65 who are earning up to 133 percent of the federal poverty level.

The federal government will also include the Federal Medical Assistance Percentages (FMAP) rate for certain beneficiaries in states that expanded Medicaid coverage before the ACA was passed in 2010.

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