Bill > HR3321

This bill aims to phase out the enhanced federal matching rate (FMAP) for Medicaid coverage of low-income adults, specifically targeting the expanded Medicaid population under the Affordable Care Act. The bill would gradually reduce the federal matching rate for states that expanded Medicaid from 90% to the state's standard federal medical assistance percentage over a period from 2027 to 2035. For non-expansion states (those that did not previously extend Medicaid coverage to low-income adults), the bill provides options: they can choose to expand coverage under the standard federal matching rate or remain with their existing Medicaid coverage. The legislation introduces a systematic reduction mechanism where each year from 2027 to 2034, the enhanced matching rate will decrease by a calculated number of percentage points, ultimately returning to the standard federal medical assistance percentage by 2035. This approach effectively reduces federal financial support for Medicaid expansion, potentially creating financial challenges for states that have relied on the higher matching rate to provide health coverage to low-income populations.

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https://www.congress.gov/bill/119th-congress/house-bill/3321/all-info