Training/Technical Assistance & Best Practices

MEMORANDUM

Date: April 30, 2009

To: CPMT Chairs
FAPT Chairs
CSA Fiscal Agents
CSA Coordinators

From: Chuck Savage, CSA Business Manager

Re: Medicaid CSA Match Rate

Earlier this year, the President signed the American Recovery and Reinvestment Act of 2009 (ARRA). One of the outcomes of this Act was to increase the federal participation rate for Medicaid funded services from October 2008 through December 2010. Additionally, the ARRA contained a provision requiring that in order to receive the increased federal participation, political subdivisions that contribute to the state share of funding for Medicaid services must be allowed to share in the state savings.

Effective October 1, 2008, the federal share for CSA residential Medicaid costs increased from 50% to 58.78%. The federal share may be adjusted quarterly. The 58.78% rate is in effect for the October 1, 2008 and January 1, 2009 quarters; our office has not yet received notice from DMAS on the April 1, 2009 rate. Accordingly, we have re-calculated the residential local match for the months of October, November and December 2008. The attached file provides the calculation of the increased local savings resulting from the increased federal rate. For each effected month, there are two tabs: the tab labeled “OCT” represents the original calculated local match rate (at the 50% rate) and the second tab, labeled “OCT Stim” represents the re-calculation using the new federal match rate of 58.78%. Column V of the spreadsheets labeled as stimulus (Stim) also contains the difference between the originally calculated local share and the new stimulus local share, or the amount of local savings.

Effective with pool fund reports submitted on April 27, the Department of Education, (DOE), state fiscal agent for CSA, will begin to make adjustments on pool fund reimbursement reports. Localities who previously had local share collected for either October, November and/or December 2008 Medicaid CSA residential payments will have a future pool fund report adjusted to reflect this increase in federal participation. Finally, DOE will begin to calculate the Medicaid local share for January 2009 moving forward incorporating the higher federal rate.

Should you have any questions, please contact me at 804-662-9818 or charles.savage@csa.virginia.gov.