Rural Support Fund Update
CHASE supplemental payments are funded from two sources: fees and federal matching funds, calculated pursuant to the federal matching assistance percentage (FMAP). Historically, the FMAP for supplemental payments was 50%. For every supplemental payment dollar, 50 cents were fees and 50 cents were federal matching funds. Beginning in Federal Fiscal Year 2019-20, the Department utilized an enhanced FMAP (eFMAP) to make supplemental payments to hospitals. With the eFMAP, the Department can use less fee to make the same payment due to the federal share of the payment increasing. This effort was taken in support of the HTP.
For 2019-2020, the eFMAP resulted in a $127M net reimbursement increase to hospitals
For 2020-2021, the eFMAP resulted in a $140M net reimbursement increase to hospitals
With the approval of the State Plan Amendment the department was also able to begin distributing the first year of Rural Support Payments, totaling $12M to 23 different rural hospitals. These payments were made in August and September 2021.