FY 2010 FMAPs Published

The FY 2010 Federal Medical Assistance Percentages (FMAPs) (http://inside.ffis.org//ff/FMAPS%20for%202010%20from%20FR.pdf)
and enhanced FMAPs were published today in the Federal Register. They are identical to those published by
FFIS on September 23, 2008, in Issue Brief 08-50.

Happy Thanksgiving! 'Nuf said.

Premiums and Cost Sharing Final Rule 

The final rule for Medicaid premiums and cost-sharing has been published in the Federal Register. It is attached (http://inside.ffis.org//ff//Medicaid%20Premiums%20and%20Cost%20Sharing%20FInal%20Rule.pdf.)

UI Extension Signed into Law

Yesterday, the Senate passed H.R. 6867, the Unemployment Compensation Extension Act of 2008. The measure
provides an additional seven weeks of federal unemployment insurance (UI) benefits for those who have exhausted
their regular state unemployment benefits (a maximum of 26 weeks) and adds an additional 13 weeks for workers
in states with the highest unemployment rates. President Bush signed the measure this morning.

EPA Changes Federalism Guidance

On November 19, EPA released revised guidance regarding federalism implications of EPA rules. The previous guidance
required consultation with state and local governments if a rule or regulation would pre-empt state or local laws or
impose substantial compliance costs on state and local governments (using $100 million as the threshold), unless those
costs were required by statute or covered by federal funds. The new guidance lowers the threshold to $25 million.

HUD Announces Changes to Hope for Homeowners Program

Housing & Urban Development (HUD) Secretary Preston has announced changes to the Hope for Homeowners Program.
The program provides up to $300 billion in guarantees for approved lenders that refinance eligible residential mortgages
of qualifying at-risk homeowners. Currently, the program will insure a loan for 90% of the home's value. The changes
increase that to 96.5%, reducing the potential loss for lenders. Other changes include making up-front payments to
extinguish subordinate liens and allowing lenders to extend mortgage terms from 30 to 40 years.

GAO Releases Statement on State Fiscal Challenges, FMAP Targeting

The Government Accountability Office (GAO) yesterday issued a statement (GAO-09-0210T) on health care. According
to the GAO, growth in health-related costs is the primary driver of the fiscal challenges facing state and local governments
over the long term, with Medicaid a key component. These challenges are exacerbated during economic downturns, which
historically result in larger-than-projected increases in Medicaid eligibility. The GAO also developed a model for a new, separate
assistance formula with an economic trigger and a method to target supplemental Medicaid funding to states during a downturn.
The GAO testimony can be found at http://www.gao.gov/new.items/d09210t.pdf.

CMS Issues Final Reg on DRA Medicaid Flexibility

Yesterday, the Centers for Medicare & Medicaid Services (CMS) made public a final regulation on Medicaid premiums and
cost sharing. The final regulation interprets and implements sections of the Deficit Reduction Act (P.L. 109-171) and the
Tax Relief and Health Care Act of 2006 (P.L. 109-432), which provide state Medicaid agencies additional flexibility to implement
premium and cost-sharing requirements for certain Medicaid recipients. The regulation is scheduled to be published in the
November 25, 2008, Federal Register and to take effect on January 26, 2009.

A copy of the regulation is available at:
http://www.federalregister.gov/OFRUpload/OFRData/2008-27717_PI.pdf.

CMS Issues State Partner Notification

On Monday, November 3, 2008, the Centers for Medicare & Medicaid Services (CMS) issued a Dear State Medicaid Director
Letter regarding the Medicare Improvements for Patients and Providers Act of 2008. A copy of the letter is attached.   

CMS Issues Final Rule on Medicaid Outpatient Hospital Services
On November 7th, the Centers for Medicare & Medicaid Services published in the Federal Register a final regulation
regarding payment for outpatient hospital and clinic services. Earlier this year, Congress approved legislation (P.L. 110-252)
that included moratoria on six other regulations; however, the outpatient hospital/clinic rule was not included. The final
rule, titled "Medicaid Program: Clarification of Hospital Outpatient Hospital Facility (Including Outpatient Hospital Clinic)
Services Definition," is scheduled to take effect December 8, 2008.

DHS Releases Grant Guidance

Last Wednesday, the Department of Homeland Security (DHS) released guidance for the FY 2009 State Homeland
Security Grant Program (SHSGP), which provides more than $3 billion to states, urban areas and transportation authorities,
including $861.3 million for State Homeland Security grants and $798.6 million for Urban Area Security Initiative (UASI) grants. 
A fact sheet can be found at:
http://www.dhs.gov/xnews/releases/pr_1225902190251.shtm