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Milliman·March 28, 2025

How Changes to Federal Medicaid Matching Rates Could Reshape State Budget Planning

Milliman actuaries examine the structure of federal matching rates (FMAP) across traditional Medicaid, ACA expansion populations, CHIP, and administrative costs, analyzing how potential shifts in federal matching formulas could impact state Medicaid budgets. The white paper models three alternative scenarios for matching rate changes and their financial implications for state Medicaid programs. This analysis is directly relevant to state Medicaid directors and MCO finance teams navigating budget uncertainty and potential federal policy changes that affect managed care capitation funding.

Managed Care · Finance · CHIP

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This is outside commentary from Milliman, not part of Medicaid Monitor's independently scored news coverage.

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