The Rich Get Richer Under the Senate’s Medicaid Proposal

This is from a new Pacific Research Institute paper by John R. Graham:

The Senate bill gives bigger Federal Medical Assistance Percentage (FMAP) increases to richer states… Each thousand-dollar increase in money income per household is associated with a one-percent increase in the FMAP under the Senate bill, and this statistically significant [association] explains over one-third of the variance in the change in FMAP.

For example, New Hampshire’s median money income is $68,175 per household, which is $16,942 greater than the national average of $51,233. Its FMAP would increase from 50 percent to 82.3 percent, an increase of 65 percent… On the other hand, Mississippi’s FMAP increases by only 20 percent, from the current 74.73 percent to 95 percent.

Comments (3)

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  1. Ken says:

    Typical. Everything Congress has been doing on health care is completely unprincipled.

  2. artk says:

    Who said life was fair? Using your example. Currently New Hampshire gets 69 cents in federal benefits for every dollar it pays in federal taxes. On the other hand Mississippi gets $1.82 in federal benefits for every dollar it pays in federal taxes.

  3. Tom H. says:

    Life may not be fair, but that does not excuse Congress.