Temporary Increase of Federal Medical Assistance Percentages (FMAP)
Total Stimulus Appropriation: $87,144,000,000
New Jersey's Portion: $2,220,000,000 over 3 years.
Allocation Method: New Jersey will receive its share based on a Federal Formula consisting of a base increase in FMAP percentages for all states as well as additional increases in FMAP percentages to target states with the greatest economic problems as determined by changes in unemployment rates. These estimates are also subject to change based on actual expenditures for State Medicaid programs.
Program Overview

The state's Medicaid infrastructure is operated under the Department of Human Services, and provides support for various Departments within State Government. The Federal Government provides funding for state Medicaid programs. This funding is known as FMAP and is a matching percentage of state Medicaid expenditures which varies among states. New Jersey currently receives an FMAP of 50%. Under Section 5001 of the economic recovery package, states would receive increases in their respective FMAP percentages for the period of October 1, 2008 through December 31, 2010. The amount of funding received will be determined by actual medical expenditures as well New Jersey's Unemployment Rate.

Federal Requirements and Restrictions

  • Maintenance of Effort Requirement (MOE): States may not have eligibility standards, methodologies, or procedures that are more restrictive than those in effect as of July 1, 2008.
  • The State must report on compliance with provider prompt pay requirements beginning with the date of enactment.
  • Prohibits states from depositing funding from the increased FMAP into any state reserve or "rainy day" fund.

Program Eligibility

  • FMAP increases do not apply to Title IV Parts A (Temporary Assistance for Needy Families, TANF), B (Child and Family Services), and D (Child Support Establishment of Paternity), the State Children’s Health Insurance Program (SCHIP), disproportionate share hospitals (DSH), or other enhanced payments based on FMAP.
  • These FMAP increases do not apply to payments for individuals enrolled as a result of expansion in the state income eligibility policies as of July 1, 2008.

Important Program Dates

October 1, 2008 – December 31, 2010 – Time period of Increased FMAP

Frequently Asked Questions on FMAP:

Q) How much addition federal funds will New Jersey receive as a result of the Increased FMAP in accordance with the American Recovery and Reinvestment Act (ARRA)?
A)New Jersey will be determined by actual expenditures as well as any changes to New Jersey’s unemployment rate. Preliminary estimates are approximately $2.2 billion over the 27 months.

Q) Will Medicaid provider rates be increased with this additional funding?
A) No. The additional funding during this period is designed to provide financial support for the anticipated increase to the existing caseload and to assist states in minimizing any reductions in services.

Q) I am a Medicaid recipient. Will there be more providers added to the program with this stimulus funding?
A) No. The number of Medicaid providers available is not determined by this additional funding.

Q) Will this additional funding be used to expand eligibility of Medicaid to higher income populations?
A) No. The additional funding during this period is designed to minimize any reductions during the recession. There is a requirement that states must not have more restrictive eligibility standards, methodologies, or procedures than those in effect as of July 1, 2008. In order to continue receiving the Increased FMAP, New Jersey will continue to cover only individuals currently eligible for Medicaid.

For more information on Medicaid in New Jersey, please visit: http://www.state.nj.us/humanservices/dmahs/dhsmed.html.