[Congressional Record Volume 148, Number 45 (Monday, April 22, 2002)]
[Senate]
[Page S3015]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself and Mr. Smith of Oregon):
  S. 2221. A bill to temporarily increase the Federal medical 
assistance percentage for the medicaid program; to the Committee on 
Finance.
  Mr. SMITH of Oregon. Mr. President, I rise today to talk about a 
vital federal program that is an essential part of our health care 
safety net--Medicaid. Last year, the Medicaid program provided health 
coverage for 44 million of the most vulnerable Americans--22.6 million 
children, 9.2 million adults in low-income families, and 12 million 
elderly and disabled. One in four American children are covered by this 
important program.
  Yet despite the program's importance, states around the country are 
struggling to fund their share of their Medicaid programs. Going into 
legislative session this year, my home state of Oregon faced a budget 
shortfall of nearly $800 million, and most other states are facing 
similar conditions. The cruel irony of this situation is that just as 
state revenues have dropped due to poor economic conditions, many more 
families are turning to Medicaid as their only source of health care. I 
know that in Oregon, the number of people on Medicaid has risen by 10% 
since June of last year, and I suspect that many of your states have 
experienced similar increases. Additionally, because of scheduled 
formula adjustments, many states will see their existing Medicaid 
payments from the Federal government fall this year.
  It is not a mystery what will happen if we do not act: states will be 
forced to cut their Medicaid programs and more Americans will lose 
their health coverage. The number of uninsured people in this country 
will rise dramatically. Last year, more than 40 million Americans lived 
and worked without health insurance, and it is estimated that the 
economic downturn will add another 4 million to the ranks of the 
uninsured.
  This legislation would allow states to continue providing health care 
to our society's most vulnerable members in this economic downturn by 
providing a temporary increase in the Federal Medical Assistance 
Program, FMAP, funds states receive to pay their portion of the 
Medicaid bill. This legislation would hold states harmless at their 
2003 FMAP levels so that no state will experience a decrease in Federal 
funds for Medicaid, while providing all states with an additional 
temporary 1.5 percentage in their matching rates for three years. It 
would also target assistance to the most needy states by providing 
another 1.5 percentage point increase in their FMAP for three years.
  The goal of this bill is to prevent erosion of health insurance 
coverage and to maintain a strong health care safety net for vulnerable 
people during the economic downturn. By temporarily increasing the 
Federal portion of the Medicaid bill, the scope and depth of possible 
state budget cuts or tax increases will be lessened, minimizing the 
potential negative impact on the economy and our most vulnerable 
citizens across the country. It is the right thing to do, and the right 
time to do it.

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