[Kaiser Health News, September 1, 2010] Health and Human Services Secretary Kathleen Sebelius has issued a deadline of September 24, 2010, for state governors to request the enhanced Medicaid funding that was approved by Congress. States that fail to formally request the additional funding by this deadline will no longer be eligible for the higher Medicaid matching rate.

As part of the federal stimulus package, the government was already slated to pay states a higher matching rate for Medicaid spending through the end of 2010. Congressional lawmakers interrupted their August recess to authorize extending the enhanced funds through June 2011. Minnesota's share has been estimated to be $263 million.

Prior to the stimulus package, the federal government reimbursed 50 percent to 76 percent of state Medicaid spending, depending on the state’s per capita income. The first federal stimulus package increased the government’s matching rate to between 61 percent and 84 percent for 2010.

However, this enhanced rate will decrease somewhat in 2011. The 6.2 percent rate increase of 2010, will decline to a 3.2 percent boost in January 2011. The matching rate will further decline to 1.2 percent in April 2011 before ceasing entirely in June 2011.

To read the full Kaiser Health News article click here. 

Minnesota Governor Tim Pawlenty has been critical of the additional federal spending on Medicaid, however, this week he indicated he is likely to accept these funds for Minnesota.

In August, more than 100 physicians responded to an MMA Action Alert urging Pawlenty to request the funds. The MMA also released a statement to the press.

Act Now! to tell Pawlenty to accept these funds to help keep Minnesota’s healthcare safety net in place for the most vulnerable Minnesotans.