Report: New Federal Medicaid Funds Will Aid Families, Improve Wisconsin's Economy

Wisconsin Could Receive $568 million in New Funding, Creating 9,500 Additional Jobs and Spurring $942 million in New Business Activity and $347 million in Added Wages

Washington, D.C.—An economic stimulus package scheduled for approval in January could give Wisconsin an additional $568 million in federal Medicaid matching funds, according to a new report released today. The report focuses on a proposal likely to be contained in an economic stimulus initiative that is expected to be the first order of business for the incoming Obama Administration and the new Congress. 

According to the report, in addition to helping Wisconsin provide important Medicaid services as more and more people need health safety net protection during the recession, these new funds are expected to help create 9,500 new jobs with $347 million in new wages and to spur an estimated $942 million in new business activity in Wisconsin.

The report was released today by the national consumer health organization Families USA. The report, titled “A Painful Recession: States Cut Health Safety Net Programs,” spotlights the growing need for increasing the federal matching funds—known as the Federal Medicaid Matching Payments, or FMAP—in the Medicaid program.

“An increase in federal Medicaid matching funds for Wisconsin is a win-win proposition,” said Ron Pollack, Executive Director of Families USA. “It would enable Wisconsin to meet the growing health care needs of its families while providing a major boost to the state’s economy.”

The Families USA analysis is based on legislation, introduced in the Senate by Senate Majority Leader Harry Reid, that would provide close to $40 billion in temporary, additional federal funding for state Medicaid programs. Similar proposals have been developed by the National Governors Association and the Obama transition team.

In addition to an analysis of the economic benefits of an FMAP increase, the Families USA report provides a state-by-state review of which states have enacted or are considering cuts of their Medicaid program and their Children’s Health Insurance Program (CHIP).

“Families across the nation are being battered economically during this recession, and they qualify in rising numbers—through job losses and pay cuts—for the health safety programs like Medicaid and CHIP,” said Pollack. “Tragically, however, as Wisconsin and other states struggle to balance their budgets, families in increasing numbers are seeing their benefits reduced and co-pays increased, and too many are being barred from safety net health coverage.”

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org