Stimulus Monies Shore Up Safety Net on Iowa's Medicaid Recipients

The Iowa Policy Project reports that the stimulus monies used for Medicaid in Iowa have been paying dividends. For every $1 that the state puts in, $1.70 is matched by the Federal government. The ARRA legislation includes certain “triggers” built in for the extra FMAP percentage increases, based on changes in state unemployment rates. Note that as more people have become unemployed that there is a proportional increase in Medicaid enrollment. When Iowa’s three-month average unemployment rate topped 5.2 percent in April, May and June 2009, the state qualified for an additional FMAP increase of about 1.9 percent, bringing the total Federal Matching Assistance Percentage to nearly 71 percent. Due to this raised matching rate, the federal government contributes about $2.42 for every dollar Iowa spends on Medicaid through October 2011.

Here are some interesting factoids about Medicaid courtesy of the IPP

Medicaid: Iowa’s Health Care
Safety Net
 In May 2009, Medicaid
provided essential health
care coverage for 410,857
state residents, or nearly 1
in 7 Iowans.

 Between October 2007 and
May 2009, Iowa’s Medicaid
enrollment increased by 13
percent. Children make up
the fastest growing
population of Medicaid
enrollees.

 54 percent of Iowa’s
Medicaid recipients are
children, a total enrollment
of 221,863 in May 2009.
However children
accounted for only 17
percent of Medicaid
expenditures in 2008.

 Elderly and disabled
populations together
comprise about 30 percent
of recipients, but account for
nearly 72 percent of
Medicaid expenditures.
This is largely due to the
high cost of prescription
drugs, home-based and
community-based services,
and nursing home care.