Oregon Would Receive $218.7 Million Increase in
Federal Funding of Medicaid and Social Services
WASHINGTON, DC – Today, Senator Gordon Smith (R-OR) and Senator John Rockefeller (D-WV) introduced legislation to increase federal matching funds for Medicaid and social services.
"The cruel irony of this situation is that just as state revenues have dropped due to poor economic conditions, more families are turning to the Oregon Health Plan as their only source of care," said Smith. "Increasing Medicaid payments to the states is the right thing to do, and now is the right time to do it."
Smith's legislation provides a temporary increase of $20 billion, evenly divided between the Federal Medical Assistance Percentage (FMAP), which dictates the federal share of the Medicaid program, and Social Services Block Grants (SSBG), which provides funding for a variety of social services.
Medicaid is a jointly-funded, federal-state health insurance program for certain low-income and needy people. It covers approximately 36 million individuals including children, the aged, and the disabled. In Oregon, the number of people on Medicaid has risen by more than 10% since June of last year. The increased number of Oregonians on Medicaid has placed additional strain on Oregon's already tight budget.
Under SSBG, states have broad flexibility in determining which services meet the needs of their unique populations. In Oregon, programs funded with SSBG include parent training for fragile families, child abuse investigation and intervention, placement for foster children, substance abuse and treatment, and independent living services for youths aging out of foster care. Some SSBG funds are also used to provide social services to children of Oregon Indian Tribal organizations, such as mental health counseling and substance abuse treatment.
"Oregon's budget is tight, and without more aid, it will be difficult to provide for all of its needs," Smith said. "It may take a while before the economy is up and running again, and it's important that families have access to health care and social services in the meantime."
Senator Smith first championed raising FMAP last year as part of the economic stimulus package. Because the package eventually signed into law did not include such an increase, he has worked on separate FMAP legislation, including an amendment that passed the Senate last year.
