Medicaid: what is FMAP and why does it matter?

The Federal Medical Assistance Percentage (FMAP) is the share of Medicaid costs funded by the federal government. As Utah's per capita income grew faster than the U.S. average, Utah's traditional Medicaid FMAP declined from 70.26% to 65.90% over the past five years. Projections forecast a further decline to 65.35% in FY 2025. A strong economy generally creates downward pressure on Medicaid enrollment, while FMAP declines place upward pressure on state Medicaid costs. Policymakers may wish to consider how to address these cost pressures driven by Utah's strong economic growth.