Washington Less than one month ago, Congress set aside $10 billion to help struggling state governments pay for Medicaid programs whose costs were spiraling
by Brook Raflo

Washington

Less than one month ago, Congress set aside $10 billion to help struggling state governments pay for Medicaid programs whose costs were spiraling out of control. Last week, the Health and Human Services Department announced a plan for distributing that money.

The funds, which come in the form of a 2.95 percent increase in the amount of Medicaid matching funds that states receive from the federal government, were part of the Jobs and Growth Tax Relief Reconciliation Act of 2003. They are slated to begin flowing this quarter, and to continue until June 30, 2004.

Each state's allotted increase depends on the amount that the state spends on Medicaid, and the funding is available only if a state does not restrict its Medicaid-eligibility requirements after Sept. 2, 2003, HHS explained.

A letter describing the way in which HHS will determine the exact increase each state will receive is available at www.cms.hhs.gov/states/letters.

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