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ARRA - Federal Stimulus Information

On February 23, 2009, President Barak Obama announced to State Governors the release of more than $15 billion in increased FMAP (Federal Medical Assistance Percentage) funding.  This $15 billion represented the first two quarters of the increased FMAP funding provided under ARRA. States must meet Medicaid eligibility requirements outlined in the new law to receive funding, and may only claim for appropriate expenditures. Click here to read the fact sheet released by the Centers for Medicare and Medicaid Services

Alabama's share for Fiscal Year 2009 totaled $354.1 million. The state received $169.8 million for the first two quarters of Fiscal Year 2009 in February and March 2009. (Click to read news story) The state received an additional $89 million in the third quarter and $65.3 million in the fourth quarter.  

The Alabama Medicaid Agency expects to receive a total of $850 million over a 27-month period covered by ARRA that ends in January 2011. This funding is coming to the Agency in the form of increased Federal matching funds.  Before ARRA, the Agency's FY 2009 matching rate was 68.01 percent federal, which required the state to provide 31.99 percent in state funds. As a result of ARRA, the Agency's FY 2009 matching rate is 77.61 percent federal, which requires 22.46 percent state matching funds.
  Federal State Ratio of Federal $ to State $
09-10 68.01 31.99 2.13
09-10 Enhanced* 77.61 22.39 3.47
09-10 ARRA 77.54 22.46 3.45

The FMAP rate represents the share of state Medicaid benefit costs paid by the federal government and is based on a three-year average of state per capita personal income as compared to the national average. For example, the FMAP rate for FY 2009 was based on the per capita personal income for calendar years 2004-2006.  *Note: The enhanced rate is only available for certain expenditures, such as the Breast and Cervical Cancer Treatment Program. Administrative expenses remain at a 50-50 federal-state match.

State Agencies Receiving ARRA Funds through Medicaid  (Sub-Recipients) through 10/31/09
Agency  Amount
DHR               $10,095,230.64
Public Health
 $10,806,889.11
Senior Services               $3,503,552.96
Mental Health             $42,399,215.54
Rehab Services               $1,804,607.25
Youth Services                   $1,087,916.44
                     
Total             $69,697,411.94

Health Information Technology (HIT) Grants

Under ARRA, states are eligible to receive grants or other funding to encourage the development and adoption of electronic health records and health information technology. 

The Alabama Medicaid Agency has been designated by Governor Bob Riley to serve as the lead for all health information technology (HIT) activities related to ARRA.  The Agency will spearhead collaborative activities related to HIT grants, coordinate federal grant requests and work closely with the state’s coordinator for all federal stimulus activities to track and manage funds made available to the state for health information technology. Click to read announcement

Click here to also learn about Alabama's health information exchange (HIE) initiatives 

For more information about HIT activities under ARRA, contact Kim Davis-Allen, Director of Transformation Initiatives, at kim.davis-allen@medicaid.alabama.gov

 Link to Governor’s Stimulus site: www.Stimulus.Alabama.gov

 
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