AARP Urges State Legislature to Avoid Medicaid Cuts

Phoenix, AZ − As the Arizona Legislature works on state budget priorities and cuts, AARP is urging state lawmakers to consider the benefits Medicaid funding brings to local economies at the same time ensuring protection for Arizonas most vulnerable citizens. AARP has created a new Arizona Medicaid fact sheet (see below) with specific information on how the states economy benefits from new job creation, increased tax revenue and the multiplier effects of spending that federal Medicaid funding brings to the state. We recognize that tough economic times call for a re-evaluation of state budget decisions, but before state lawmakers make any decisions, we hope they take into account that Medicaid spending is also an effective way to stimulate our economy, said David Mitchell, AARP Arizona State Director. The new state fact sheet includes research by Moodys Analytics, the Kaiser Commission on Medicaid and the Uninsured, and the Rural Policy Research Institute that clearly shows how Medicaid fuels a states economy. The research shows that for every dollar Arizona cuts in Medicaid, Arizona loses $1.92 in federal matching funds. An 8% increase in funding to states for 15 months, as recently proposed by Congressional leaders (H.R. 7110), would generate $794,835,075.00 for Arizona, according to an analysis of the legislation by Health Management Associates, www.healthmanagement.com. That money then flows through the economy, providing jobs and generating tax revenue for both state and local governments. Since the economic downturn began, AARP has coordinated a continuing effort to prevent state Medicaid cuts. On the federal level, AARP has strongly advocated for including a temporary increase in federal funding to states for Medicaid (known as FMAP*) in economic stimulus legislation. While Congress did not act on FMAP in the lame-duck session, AARP will continue to advocate strongly for FMAP increases, and the new Administration has indicated that it is receptive. *Federal Medical Assistance Percentages [FMAP] are the percentage rates used to determine the amount of matching funds allocated by the federal government annually to each state for Medicaid, which varies based on state income levels.