The federal government helps states respond to the health care needs of their residents by providing matching funding. The reimbursement rate varies between states based on a formula that takes into account per capita income. Matching rates range from one federal dollar for every state dollar spent to almost four dollars for every dollar spent. Initially, the federal government will finance the full cost of covering newly-eligible Medicaid beneficiaries under the Affordable Care Act. States are also eligible for performance bonuses for successful efforts to make it easier for families to enroll and renew Medicaid coverage and reaching more eligible but uninsured children.

 

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