[Federal Register Volume 79, Number 231 (Tuesday, December 2, 2014)]
[Notices]
[Pages 71426-71428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28398]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES


Federal Financial Participation in State Assistance Expenditures; 
Federal Matching Shares for Medicaid, the Children's Health Insurance 
Program, and Aid to Needy Aged, Blind, or Disabled Persons for October 
1, 2015 Through September 30, 2016

AGENCY: Office of the Secretary, HHS.

ACTION: Notice.

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SUMMARY: The Federal Medical Assistance Percentages (FMAP), Enhanced 
Federal Medical Assistance Percentages (eFMAP), and disaster-recovery 
FMAP adjustments for Fiscal Year 2016 have been calculated pursuant to 
the Social Security Act (the Act). These percentages will be effective 
from October 1, 2015 through September 30, 2016. This notice announces 
the calculated FMAP rates that the U.S. Department of Health and Human 
Services (HHS) will use in determining the amount of federal matching 
for state medical assistance (Medicaid), Temporary Assistance for Needy 
Families (TANF) Contingency Funds, Child Support Enforcement 
collections, Child Care Mandatory and Matching Funds of the Child Care 
and Development Fund, Foster Care Title IV-E Maintenance payments, and 
Adoption Assistance payments, and the eFMAP rates for the Children's 
Health Insurance Program (CHIP) expenditures. Table 1 gives figures for 
each of the 50 states, the District of Columbia, Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands. This notice reminds states of available 
disaster-recovery FMAP adjustments for qualifying states, and 
adjustments available for states meeting requirements for negative 
growth in total state personal income.
    This notice also contains the increased eFMAPs for CHIP as 
authorized under the Patient Protection and Affordable Care Act 
(Affordable Care Act) for fiscal years 2016 through 2019 (October 1, 
2015 through September 30, 2019).
    Programs under title XIX of the Act exist in each jurisdiction. 
Programs under titles I, X, and XIV operate only in Guam and the Virgin 
Islands, while a program under title XVI (Aid to the Aged, Blind, or 
Disabled) operates only in Puerto Rico. The percentages in this notice 
apply to state expenditures for most medical assistance and child 
health assistance, and assistance payments for certain social services. 
The Act provides separately for federal matching of administrative 
costs.
    Sections 1905(b) and 1101(a)(8)(B) of the Social Security Act (the 
Act) require the Secretary of HHS to publish the FMAP rates each year. 
The Secretary calculates the percentages, using formulas in sections 
1905(b) and 1101(a)(8), and calculations by the Department of Commerce 
of average income per person in each state and for the Nation as a 
whole. The percentages must fall within the upper and lower limits 
specified in section 1905(b) of the Act. The percentages for the 
District of Columbia, Puerto Rico, the Virgin Islands, Guam, American 
Samoa, and the Northern Mariana Islands are specified in statute, and 
thus are not based on the statutory formula that determines the 
percentages for the 50 states.

Federal Medical Assistance Percentage (FMAP)

    Section 1905(b) of the Act specifies the formula for calculating 
FMAPs as follows:

    `` ``Federal medical assistance percentage'' for any state shall 
be 100 per centum less the state percentage; and the state 
percentage shall be that percentage which bears the same ratio to 45 
per centum as the square of the per capita income of such state 
bears to the square of the per capita income of the continental 
United States (including Alaska) and Hawaii; except that (1) the 
Federal medical assistance percentage shall in no case be less than 
50 per centum or more than 83 per centum, (2) the Federal medical 
assistance percentage for Puerto Rico, the Virgin Islands, Guam, the 
Northern Mariana Islands, and American Samoa shall be 55 percent. . 
. .''

    Section 4725(b) of the Balanced Budget Act of 1997 amended section 
1905(b) to provide that the FMAP for the District of Columbia for 
purposes of titles XIX and XXI shall be 70 percent. For the District of 
Columbia, we note under Table 1 that other rates may apply in certain 
other programs. In addition, we note the rate that applies for Puerto 
Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands in certain other programs pursuant to 
section 1118 of the Act. The rates for the States, District of Columbia 
and the territories are displayed in Table 1, Column 1.
    Section 1905(y) of the Act, as added by section 2001 of the Patient 
Protection and Affordable Care Act of 2010 (''Affordable Care Act''), 
provides for a significant increase in the Federal Medical Assistance 
Percentage (FMAP) for medical expenditures for individuals determined 
eligible under the new adult group in the state and who will be 
considered to be ``newly eligible'' in 2014, as defined in section 
1905(y)(2)(A) of the Act. The FMAP for these newly eligible individuals 
will be 100 percent for Calendar Years 2014, 2015, and 2016, gradually 
declining to 90 percent in 2020 where it remains indefinitely. In 
addition, section 1905(z) of the Act, as added by section 10201 of the 
Affordable Care Act, provides that states that had expanded substantial 
coverage to low-income parents and nonpregnant adults without children 
prior to the enactment of the Affordable Care Act, referred to as 
``expansion states,'' shall receive an enhanced FMAP that begins in 
2014 for nonpregnant childless adults who may be required to enroll in 
benchmark coverage. These provisions are discussed in more detail in 
the Medicaid Eligibility proposed rule published on August 17, 2011 (76 
FR 51172) and the final rule published on March 23, 2012 (77 FR 17143).

Adjustments to the FMAP

    For purposes of Title XIX (Medicaid) of the Social Security Act, 
the Federal Medical Assistance Percentage (FMAP), defined in section 
1905(b) of the Social Security Act, for each state beginning with 
fiscal year 2006 is subject to an adjustment pursuant to section 614 of 
the Children's Health Insurance Program Reauthorization Act of 2009 
(CHIPRA), Public Law 111-3. Section 614 of CHIPRA stipulates that a 
state's FMAP under Title XIX (Medicaid) must be adjusted in two 
situations.
    In the first situation, if a state experiences positive growth in 
total personal income and an employer in that state has made a 
significantly

[[Page 71427]]

disproportionate contribution to a pension or insurance fund, the 
state's FMAP must be adjusted. Employer pension and insurance fund 
contributions are significantly disproportionate if the increase in 
contributions exceeds 25 percent of the increase in total personal 
income in that state. A Federal Register Notice with comment period was 
issued on June 7, 2010 (75 FR 32182) announcing the methodology for 
calculating this adjustment; a final notice was issued on October 15, 
2010 (75 FR 63480).
    A second situation arises if a state experiences negative growth in 
total personal income. Beginning with Fiscal Year 2006, section 
614(b)(3) of CHIPRA specifies that certain employer pension or 
insurance fund contributions shall be disregarded when computing the 
per capita income used to calculate the FMAP for states with negative 
growth in total personal income. In that instance, for the purposes of 
calculating the FMAP, for a calendar year in which a state's total 
personal income has declined, the portion of an employer pension and 
insurance fund contribution that exceeds 125 percent of the amount of 
the employer contribution in the previous calendar year shall be 
disregarded.
    We request that states follow the same methodology to determine 
potential FMAP adjustments for negative growth in total personal income 
that HHS employs to make adjustments to the FMAP for states 
experiencing significantly disproportionate pension or insurance 
contributions. See also the information described in the January 21, 
2014 Federal Register notice (79 FR 3385).
    This notice does not contain an FY 2016 adjustment for a major 
statewide disaster for any state because no state's FMAP decreased by 
at least three percentage points from FY 2015 to FY 2016.

Enhanced Federal Medical Assistance Percentage (eFMAP) for CHIP

    Section 2105(b) of the Act specifies the formula for calculating 
the eFMAP rates as follows:

    The ``enhanced FMAP'', for a state for a fiscal year, is equal 
to the Federal medical assistance percentage (as defined in the 
first sentence of section 1905(b)) for the state increased by a 
number of percentage points equal to 30 percent of the number of 
percentage points by which (1) such Federal medical assistance 
percentage for the state, is less than (2) 100 percent; but in no 
case shall the enhanced FMAP for a state exceed 85 percent.

    In addition, Section 2105(b) of the Social Security Act, as amended 
by Section 2101 of the Affordable Care Act, increases the eFMAP for 
states by 23 percentage points:

. . . during the period that begins on October 1, 2015, and ends on 
September 30, 2019, the enhanced FMAP determined for a state for a 
fiscal year (or for any portion of a fiscal year occurring during 
such period) shall be increased by 23 percentage points, but in no 
case shall exceed 100 percent.

    The eFMAP rates are used in the Children's Health Insurance Program 
under Title XXI, and in the Medicaid program for certain children for 
expenditures for medical assistance described in sections 1905(u)(2) 
and 1905(u)(3) of the Act. There is no specific requirement to publish 
the eFMAP rates. We include them in this notice for the convenience of 
the states, and display both the normal eFMAP rates (Table 1, Column 2) 
and the Affordable Care Act's increased eFMAP rates (Table 1, Column 3) 
for comparison.

DATES: Effective Dates: The percentages listed in Table 1 will be 
effective for each of the four quarter-year periods beginning October 
1, 2015 and ending September 30, 2016.

FOR FURTHER INFORMATION CONTACT: Thomas Musco or Rose Chu, Office of 
Health Policy, Office of the Assistant Secretary for Planning and 
Evaluation, Room 447D--Hubert H. Humphrey Building, 200 Independence 
Avenue SW., Washington, DC 20201, (202) 690-6870.

(Catalog of Federal Domestic Assistance Program Nos. 93.558: TANF 
Contingency Funds; 93.563: Child Support Enforcement; 93.596: Child 
Care Mandatory and Matching Funds of the Child Care and Development 
Fund; 93.658: Foster Care Title IV-E; 93.659: Adoption Assistance; 
93.769: Ticket-to-Work and Work Incentives Improvement Act (TWWIIA) 
Demonstrations to Maintain Independence and Employment; 93.778: 
Medical Assistance Program; 93.767: Children's Health Insurance 
Program)

    Dated: November 20, 2014.
Sylvia M. Burwell,
Secretary.

 Table 1--Federal Medical Assistance Percentages and Enhanced Federal Medical Assistance Percentages, Effective
                              October 1, 2015-September 30, 2016 (Fiscal Year 2016)
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                                                                (1)                (2)                (3)
                                                        --------------------------------------------------------
                                                                                                Enhanced federal
                                                                             Enhanced federal       medical
                         State                            Federal medical        medical           assistance
                                                             assistance         assistance      percentages with
                                                            percentages      percentages for       ACA 23 pt
                                                                                 CHIP ***      increase for CHIP
                                                                                                      ****
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Alabama................................................              69.87              78.91             100.00
Alaska.................................................              50.00              65.00              88.00
American Samoa *.......................................              55.00              68.50              91.50
Arizona................................................              68.92              78.24             100.00
Arkansas...............................................              70.00              79.00             100.00
California.............................................              50.00              65.00              88.00
Colorado...............................................              50.72              65.50              88.50
Connecticut............................................              50.00              65.00              88.00
Delaware...............................................              54.83              68.38              91.38
District of Columbia **................................              70.00              79.00             100.00
Florida................................................              60.67              72.47              95.47
Georgia................................................              67.55              77.29             100.00
Guam*..................................................              55.00              68.50              91.50
Hawaii.................................................              53.98              67.79              90.79
Idaho..................................................              71.24              79.87             100.00
Illinois...............................................              50.89              65.62              88.62
Indiana................................................              66.60              76.62              99.62

[[Page 71428]]

 
Iowa...................................................              54.91              68.44              91.44
Kansas.................................................              55.96              69.17              92.17
Kentucky...............................................              70.32              79.22             100.00
Louisiana..............................................              62.21              73.55              96.55
Maine..................................................              62.67              73.87              96.87
Maryland...............................................              50.00              65.00              88.00
Massachusetts..........................................              50.00              65.00              88.00
Michigan...............................................              65.60              75.92              98.92
Minnesota..............................................              50.00              65.00              88.00
Mississippi............................................              74.17              81.92             100.00
Missouri...............................................              63.28              74.30              97.30
Montana................................................              65.24              75.67              98.67
Nebraska...............................................              51.16              65.81              88.81
Nevada.................................................              64.93              75.45              98.45
New Hampshire..........................................              50.00              65.00              88.00
New Jersey.............................................              50.00              65.00              88.00
New Mexico.............................................              70.37              79.26             100.00
New York...............................................              50.00              65.00              88.00
North Carolina.........................................              66.24              76.37              99.37
North Dakota...........................................              50.00              65.00              88.00
Northern Mariana Islands *.............................              55.00              68.50              91.50
Ohio...................................................              62.47              73.73              96.73
Oklahoma...............................................              60.99              72.69              95.69
Oregon.................................................              64.38              75.07              98.07
Pennsylvania...........................................              52.01              66.41              89.41
Puerto Rico *..........................................              55.00              68.50              91.50
Rhode Island...........................................              50.42              65.29              88.29
South Carolina.........................................              71.08              79.76             100.00
South Dakota...........................................              51.61              66.13              89.13
Tennessee..............................................              65.05              75.54              98.54
Texas..................................................              57.13              69.99              92.99
Utah...................................................              70.24              79.17             100.00
Vermont................................................              53.90              67.73              90.73
Virgin Islands *.......................................              55.00              68.50              91.50
Virginia...............................................              50.00              65.00              88.00
Washington.............................................              50.00              65.00              88.00
West Virginia..........................................              71.42              79.99             100.00
Wisconsin..............................................              58.23              70.76              93.76
Wyoming................................................              50.00              65.00              88.00
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* For purposes of section 1118 of the Social Security Act, the percentage used under titles I, X, XIV, and XVI
  will be 75 per centum.
** The values for the District of Columbia in the table were set for the state plan under titles XIX and XXI and
  for capitation payments and DSH allotments under those titles. For other purposes, the percentage for DC is
  50.00, unless otherwise specified by law.
*** These eFMAP rates for CHIP are listed here for illustrative purposes only. They are superseded by the ACA 23
  percentage point increase in column 3.
**** Section 2101(a) of the Affordable Care Act amended Section 2105(b) of the Social Security Act to increase
  the enhanced FMAP for states by 23 percentage points in CHIP, but not to exceed 100 percent, for the period
  that begins on October 1, 2015 and ends on September 30, 2019 (fiscal years 2016 through 2018).
Note: Both the normal eFMAP rates and the Affordable Care Act's increased eFMAP rates are displayed for
  comparison.

[FR Doc. 2014-28398 Filed 11-28-14; 11:15 am]
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