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DHHS announces plan to pay Medicaid credit to counties DHHS provided to counties on May 13 the county credit resulting from the increased federal Medicaid participation per the American Recovery and Reinvestment Act. ARRA increased the federal Medicaid participation rate, known as the FMAP, and made the increase retroactive to October 2008. Since counties fund 7.5 percent of the 2008-09 non-federal share of Medicaid, this reduced the Medicaid obligation for counties. The NC-DHHS has calculated the county credit based on the difference of the total Medicaid expenditures per county area for the October - February period (November - March warrant drafts) at the old v. new FMAP rates. DHHS then applied the entire five month credit ($25.5 mil statewide) against the April county Medicaid expense ($12.4 mil statewide), for a net statewide credit amount of $13.1 million. Per the DHHS Controller's Office, all credit processing should be completed this week. If your county has an e-pay account with the state, your e-pay account will be credited with the difference. If not, DHHS will cut a manual check to you. As a reminder, the June warrant (May expenses) will be the last Medicaid services draft in which counties will participate. Per the county Medicaid relief swap, enacted with the 2007 state appropriations act, counties are relieved of financial participation in Medicaid services incurred after May 31, 2009. Counties will continue to fund Medicaid administrative costs, including transportation expenses.
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