Jay Rockefeller: “The FMAP is currently calculated annually under the following formula. The FMAP is at least 50 percent and is calculated…”

“The FMAP is currently calculated annually under the following formula. The FMAP is at least 50 percent and is calculated based on the ratio of a State's 3-year average of per capita income to the 3-year average of per capita income of the Nation. Given the nature of this formula, the previous year's FMAP in no way affects the calculation of future FMAPs. Basically, if the State's average per capita income is below the national per capita average, the State gets a higher FMAP. The FMAP is calculated usually 6 months to a year in advance of the start of a Federal fiscal year. The amendment would take the FMAP that has already been calculated by HHS under this formula for fiscal year 2003 and fiscal year 2004 and increase it by 2.95 percentage points for a portion of those years. It does not adjust the underlying formula. Because the FMAP is calculated annually, and the calculation is still based on the current per capita income ratio, our amendment in no way increases the baseline for future FMAP calculations. I would like to add that I completely concur with the Senator from Nebraska's statement on the temporary nature of the FMAP.”