Notes from the Senate– Jim White

Posted January 2, 2013 at 8:00 am

As we prepare for our upcoming 88th Legislative Session, I first of all hope each of you had a Blessed Christmas Season and will have a Healthy and Prosperous New Year.

This week I received our South Dakota Medicaid S.F.Y.(State Fiscal Year) F.M.A.P. report. Our state’s medicaid is jointly funded by the state and the federal government. The federal government’s share of the medicaid expenditures is called F.M.A.P. (Federal Medical Assistance Percentage). States must contribute the remaining portion in order to qualify for the federal funds.

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Notes from the Senate By Senator-Elect Jim White

The F.M.A.P. rate is determined annually by a formula that compares the states’ averages per capita income level with the national average over the most recent three years (F.M.A.P. compares 2009-2010-2011). States with a higher per capita income level are reimbursed a smaller share of their costs. (No state receives less than 50% share).

S.F.Y. budget rate and impact saw every state have an increase in their per capita income in 2011 with South Dakota having the biggest gain of 11.8%. Because South Dakota’s per capita income is doing well compared to other states, our F.M.A.P. will decrease by 2.75% to 54.2% for S.F.Y. 14, and the State’s share will go up equally..

Based on the agency’s budget request, the S.F.Y.14 impact of the federal match rate reduction is estimated at an increase of $20,008,950 in state general funds and a decrease of $20,008,950 in federal funds. This is a statewide total for all departments with medicaid expenses.

Thank you for the opportunity of being your District 22 Senator-elect. Please contact me at 350-5127 or jimwhite@hur.midco.net.

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