Medicaid: Fair Distribution of Federal Funds to Local Governments
This act aims to ensure that local governments contributing to Medicaid expenditures receive an equitable share of increased federal funding. If a state receives more federal money for healthcare, a portion of these funds must be distributed back to the localities that also bear costs. These changes could impact local budget stability and healthcare service availability.
Key points
Local governments will receive a proportional return of additional federal Medicaid funds if they co-finance the program.
Changes take effect from January 1, 2024, applying to increased federal medical assistance percentages.
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