Chapter 3 of MACPAC’s March 2012 report outlines the approaches that states use to finance their non-federal share of Medicaid expenditures and begins to explore the interaction of Medicaid financing and provider payment, including the use of supplemental payments by some states to certain providers. The chapter concludes with an update on State Children’s Health Insurance (CHIP) financing, including the calculation of CHIP funding allotments to states and the contingency fund available for states that exhaust their federal CHIP funding.
Erratum: Please note that the statement on p. 175, “The amount of Medicaid funding that may be generated through health-care related taxes generally cannot exceed 25 percent of the total non-federal share in a given year” was in error. This was a time-limited provision in statute that has since expired.
From: March 2012 Report to the Congress on Medicaid and CHIP