Thanks to Congress, Medicaid Is Spiraling Out of Control

… Back in March, Congress passed the Families First Coronavirus Relief Act (FFCRA). Buried in the bill was a provision that gave states enhanced funding — a bump in what’s known as the Federal Medicaid Assistance Percentage (FMAP) — to deal with increasing enrollment on the program. But there was a catch.

To receive the FMAP, states had to give up control of their Medicaid programs.

… states were forced to agree to provide coverage to every single current and incoming enrollee on the program — even if they were determined to be ineligible. These are known as Maintenance of Effort (MOE) restrictions. So, if a Medicaid enrollee was caught committing fraud, or was simply no longer eligible for the program, states would be left powerless to remove them. And they remain powerless to do so today — creating a contradiction between federal law barring the removal of any enrollees and several state laws that require agencies to remove ineligible Medicaid recipients…

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