Second Economic Stimulus Package With Medicaid Funds Likely To Pass, Rep. Dingell Says

Congress this year likely will pass a second economic stimulus package that includes a temporary increase in the federal medical assistance percentage states receive for Medicaid, House Energy and Commerce Committee Chair John Dingell (D-Mich.) said on Tuesday during a Health Subcommittee hearing, CQ HealthBeat reports. He said, "I believe that before the fall is here we will have a second stimulus package that will include a targeted and temporary increase in assistance for Medicaid," adding, "It is very much needed."

The hearing focused on a bill (HR 5268), co-sponsored by Dingell and Subcommittee Chair Frank Pallone (D-N.J.), that would increase FMAP by 2.95% for states and by 5.9% for U.S. territories from April 1, 2008, to June 30, 2009. The legislation would increase federal Medicaid spending by $10 billion to $15 billion.

Prospects Unclear
According to CQ HealthBeat, "Democratic leaders in the House and Senate have said they intend to move an emergency spending or economic stimulus bill in coming weeks," but a "stimulus bill is unlikely to reach the floor in either the House or Senate before September." In addition, "Dingell's prediction aside, it's unclear whether a second stimulus package will become law," CQ HealthBeat reports.

An unnamed House Republican aide said, "I would guess that the odds are probably against it getting done at the end of the day," as the package appears likely "to be much more politically driven, which would make it easier for Republicans to oppose." Democrats "now seem to be moving forward and developing proposals without any input from Republicans," the aide said, adding, "The wild card may be how actively the states press for this."

Jodi Omear, a spokesperson for the National Governors Association, said that the group has not taken a position on the bill but has adopted a policy to support the "development of national policies and programs to ease the pressure of economic downturns on state and local government." She said, "For example, governors support federal efforts to assist states and stimulate the economy through temporary increases in the federal matching rate for Medicaid and flexible block grants for states. Such efforts were effective in the past to stabilize the economy and maintain health care services for the most vulnerable populations" (Reichard, CQ HealthBeat, 7/22).