The $825 billion economic recovery package presented by House Democrats includes $88 billion to increase the federal share of states’ Medicaid costs.
States would receive a bump of 4.9 percent in their federal matching rate for nine quarters, retroactive to October 2008. In addition, states could receive an additional increase in federal funds if they experience significant increases in unemployment rates.
In order to qualify for the increased Medicaid funds, states must not restrict Medicaid eligibility levels above those in place July 1, 2008. Restrictions prohibited include income eligibility or changes that make it more difficult for individuals to meet procedural requirements for enrollment or renewal.
The Center on Budget and Policy Priorities has released a preliminary analysis of the increases each state could expect in state fiscal years 2009, 2010 and 2011. In addition, check out a comparison between House and Senate versions of the plan.