SENATORS COLLINS, SNOWE SUPPORT EXTENSION OF FEDERAL MEDICAID FUNDING

"There is no question that states, including Maine, continue to suffer from the lingering effects of the national recession and declining revenues. Loss of jobs often means loss of health insurance, and it is well documented that the number of people relying on Medicaid has increased during this recession. Moreover, this increased demand for services has occurred at precisely the point when state budgets have been under the most pressure. In March, we supported legislation that passed the Senate that would have extended for six additional months the temporary increase in the Medicaid payment known as FMAP. Unfortunately, that legislation stalled in the House of Representatives.

"We understand that, as our national and state economies continue to struggle, a further extension of the enhanced FMAP is necessary to help states protect against further job losses as the economy slowly turns around.

"Maine's hospitals, nursing homes and home health agencies are also struggling due to the economic downturn. An extension of the enhanced FMAP with the gradual phase out included in this bill will help to ensure that these providers of critical health care services can continue to serve those who reach out to them for services.

"We have always felt strongly that any extension of the enhanced Medicaid rate should be offset and not contribute to our skyrocketing national debt. We strongly urge the House of Representatives to return into session immediately and pass this legislation to aid our states."

###