Reps. Zeldin, Stefanik, Reed and Katko Urgently Call on Senator Schumer to Sign Off on the Senate Making a Critical Technical Correction to Coronavirus Bill, Providing NYS With $6 Billion in Desperately Needed Healthcare Funding | Congressman Lee Zeldin

Reps. Zeldin, Stefanik, Reed and Katko Urgently Call on Senator Schumer to Sign Off on the Senate Making a Critical Technical Correction to Coronavirus Bill, Providing NYS With $6 Billion in Desperately Needed Healthcare Funding

March 25, 2020
Press Release

PATCHOGUE, NY - Today, Representatives Lee Zeldin (R, NY-1), Elise Stefanik (R, NY-21), Tom Reed (R, NY-23), and John Katko (R, NY-24), urgently called on Senate Minority Leader Charles Schumer to sign off on the United States Senate making a technical change that would free up over $6 billion in Medicaid funding for the State of New York as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Federal Medical Assistance Percentages (FMAP) is a rate enacted in 1965 that determines the federal funding share for state Medicaid programs. A state’s FMAP, which varies from state-to-state, determines the percentage at which the federal government matches state funds spent on Medicaid. The State of New York has an FMAP of 50%, which means that for every 50 cents the state and localities spend on Medicaid, the federal government contributes an additional 50 cents. 

The Families First Coronavirus Response Act (H.R. 6201), which was signed into law last week, included a temporary FMAP increase of 6.2% across the board, which would have brought the State of New York’s FMAP to 56.2%. However, this provision included technical language that disqualified states if they made Medicaid reforms after January 1, 2020.  

The State of New York, in an effort to crack down on out of control Medicaid spending, has been making Medicaid reforms since January 1, 2020, therefore disqualifying the state from over $6 billion in additional Medicaid funding through this 6.2% FMAP increase.

“We have witnessed the devastation inflicted by coronavirus first-hand, with our home state of New York being the hardest hit by this outbreak with over 30,000 positive cases,” said the Members. “Now, due to a technical error, over $6 billion in desperately needed healthcare funding for New York is being blocked, preventing vital resources from reaching health care workers and their patients on the ground. While we maintain that no further cost sharing burden must be brought down on our local governments, the State of New York must not be penalized for reigning in frivolous Medicaid spending. The Senate must immediately correct this during ongoing negotiations of the CARES Act, and ensure we have the vital healthcare resources we need to successfully fight on the front lines of this battle against coronavirus.”