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Detailed Explanation of Colorado’s FMAP Under the American Recovery and Reinvestment Act

The American Recovery and Reinvestment Act (ARRA) provides a total of $87 billion for a temporary increase in the share of Medicaid that the federal government pays, otherwise known as the Federal Medical Assistance Percentage (FMAP). The enhanced FMAP will be available to states October 1, 2008 through December 31, 2010, a total of nine quarters. Over the nine quarters, Colorado is expected to receive an estimated $880 million. Broken down by fiscal year, Colorado will see an additional $250 million in FY2009, $430 million in FY2010 and $220 in FY2011.1 In order to receive the enhanced FMAP, however, Colorado must maintain eligibility levels as of July 1, 2008.

Released Feb. 19, 2009

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