Issue Brief , Report | Nov 20, 2015

Medicaid and the Indian Health Service: States to Receive Additional Federal Funds

Deborah Bachrach and Julian Polaris, Manatt Health Solutions

Recently, the Centers for Medicare and Medicaid Services (CMS) announced plans to increase the range of Medicaid services furnished by Indian Health Services (IHS) eligible for 100 percent federal match.  This proposal, which will effectively reduce states’ cost for Medicaid expansion and buffer the impending decrease in the federal matching rate for newly eligible adults after 2016, may be of particular interest to states with a significant American Indian and Alaskan Native (AI/AN) population.  Recent research by Manatt Health Solutions has examined the fiscal implications of Medicaid expansion.  The first and second reports explored state budget savings and revenue gains associated with expansion, while the third specifically examined the impact of expansion on uncompensated care spending and related state budget implications, and the fourth investigated the potential impact of expansion on criminal justice costs.  This issue brief, the fifth in this series prepared by Manatt Health Solutions, examines proposed rules that offer states additional federal funding for Medicaid services to American Indians and Alaskan Natives.