Urban Institute Releases Research Report on Impact of Medicaid Funding Limits

The Urban Institute, in partnership with the Robert Wood Johnson Foundation, recently published a study illustrating the financial impact on states when federal funding received per Medicaid enrollee is limited and eliminating the Federal Medical Assistance Percentage (FMAP), which expanded eligibility for state Medicaid programs. It was found that reducing federal Medicaid spending in these ways would make it difficult for states to maintain their current Medicaid programs. To cope, states may need to raise taxes, cut spending in other areas like education, reduce payment rates for providers, or lower benefits for Medicaid enrollees.

Click HERE to access the Urban Institute research report, Imposing Per Capita Medicaid Caps and Reducing the Affordable Care Act’s Enhanced Match: Impacts on Federal and State Medicaid Spending 2026-35.