Congress Working on Budget Deal and Details Emerge on Phase out of FMAP

Congress is trying to get a FY 2023 budget passed before the end of the year to prevent a government shutdown. Congress is making progress and is likely to get this done this week.

In the 4,000 plus page bill (also known as the omnibus package), nursing homes and assisted living providers are generally left alone and AHCA/NCAL reports that there is nothing negative included. However, there will be forthcoming battles on the regulatory front, particularly with CMS.
The Omnibus bill does outline the phase out of the enhanced Federal Medicaid Assistance Percentage (FMAP) that was included in the Families First Coronavirus Response Act. Until now, states have been getting an additional 6.2% FMAP. The bill phases out the enhancement during 2023:
  • From April to June, the increased FMAP would be 5%.
  • From July to September, it would be 2.5%.
  • From October to December, it would be 1.5%.
On December 31, 2023, the enhanced FMAP ends entirely.The FMAP is tied to the public health emergency. The prevailing thought has been that the PHE will end on April 11, which would mean the enhanced FMAP would go away all at once at the end of that quarter. With this omni proposal, a portion of it will continue through 2023. On the other hand, it is possible that HHS will keep the PHE going beyond April 11, and if that's the case, this is less money to the states. As additional information is available, we will be sure to share it with members.

Staff contact: