Sparking State Funding Discussions for Closing the Gap

Dear Partners:

Numerous reports show that closing the coverage gap is good for state budgets and reduces uncompensated care – all while being fully paid for by federal dollars until 2017. These savings are typically even sufficient to cover the state share of expansion costs, which begins kicking in at the start of 2017. Nevertheless, states may need to find immediate sources of revenue to support closing the coverage gap before these savings accrue.

To help you engage in dialogue about where those funding sources will come from, we are providing a few resources about possible solutions.

  • Health Care Provider Assessments: This policy brief walks through the rules governing the use of provider assessments to fund Medicaid, and gives some examples of states that have used provider assessment proposals to help fund closing the coverage gap. You may also be interested in our guide to engaging hospitals in your campaign to close the coverage gap.
  • Enhanced Federal CHIP Funding: The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) ensures the implementation of the scheduled 23 percentage-point bump to CHIP federal matching funds for states – potentially freeing up state dollars for Medicaid. We have prepared brief points you can use to discuss this policy and its potential to offset any state costs associated with closing the coverage gap.

If you have any questions about these resources, please contact Amber Ma at ama@communitycatalyst.org

Thank you for your continued advocacy,

The Community Catalyst Close the Gap Team

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