Governors Will Have to Ask For Medicaid Money

August 24, 2010

If governors want the extra Medicaid funds provided for in the recent stimulus bill, they are going to have to ask for it.

That’s what they were told in a letter sent out last week by Health and Human Services Secretary Kathleen Sebelius. 

In the letter, Sebelius wrote, "This new federal funding can stave off the deep cuts to Medicaid that many had feared, and sustain jobs in hospitals, health centers and communities across the country.”

“As a former governor and current partner with states in running Medicaid, I urge you to act."

The stimulus bill, passed earlier this month, extended an enhancement of Federal matching funds that was slated to expire in December. Some states had counted on receiving the extra Medicaid dollars when developing budgets for the current fiscal year.

Though the funds in the final bill were less than in earlier versions, they will still help states avoid cuts in enrollment and reimbursements.    

While most governors had lobbied Congress for the extension of the Medicaid fund enhancement, a minority were critical of additional spending by Washington. Included in that number were some that had earlier supported the enhanced funding.

The governors have until September 24 to submit requests for the money.