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

Arizona Could Receive $925.9 Million in new Funding, Creating 14,400 Additional Jobs and Spurring $1.6 Billion in New Business Activity and $590.1 million in Added Wages

Washington, D.C.—An economic stimulus package scheduled for approval in January could give Arizona an additional $925.9 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 Arizona 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 14,400 new jobs with $590.1 million in new wages and to spur an estimated $1.6 billion in new business activity in Arizona.

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 Arizona is a win-win proposition,” said Ron Pollack, Executive Director of Families USA. “It would enable Arizona 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 Arizona 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