Federal and state governments jointly finance the Medicaid program, with the federal government matching states’ spending. This matching rate, known as the federal medical assistance percentage (FMAP), varies from state to state and is inversely related to the state’s per capita income. It currently ranges from 50-75%.
Similar to Medicaid, the federal government matches states spending; in CHIP however, these funds are capped overall and for each state. This capped funding is distributed among the states in state-specific allotments, determined annually by a formula set out in the statute. The federal government assumes a larger share of the financing with an enhanced matching rate, currently ranging from 65-82%.
The following tables provide data on Medicaid and CHIP federal and state financing. All documents are available in PDF format.
- Federal Match Rates: Regular and Enhanced, FY2012 – FY2014
- States’ FMAPs Under the Provisions of the American Recovery and Reinvestment Act (ARRA)
For details about the implementation of the extension of the FMAP increase, see the CMCS Informational Bulletin from August 18, 2010.