Today, a coalition of 20 national organizations representing consumers, health care providers, and health plans sent a letter to Congressional leaders supporting a recent National Governors Association’s request that they increase federal matching funds for Medicaid by 12 percent.

In late April, the nation’s governors reached bipartisan support for a broad set of recommendations to help states address the COVID-19 pandemic and its devastating impact on their budgets. In their letter, the governors asked Congress to increase the states’ Federal Medical Assistance Percentage (FMAP) to 12 percent, retroactive to Jan. 1, 2020, to be maintained until the nation’s unemployment rate stabilizes at 5 percent.

In 2009, Congress temporarily raised the FMAP rate by 12 percent during the Great Recession to help states with shortfalls. In March, Congress again temporarily raised it by 6.2 percentage points in its Families First Coronavirus Response Act, but governors and their allies point out that more is needed.

View the National Governors Association letter to Congress requesting a 12 percent FMAP increase here.

Read the coalition’s letter supporting the governors’ request here.

States are reeling under the demands to address the COVID-19 pandemic and the economic impact of the disease. With state revenues significantly lower than projections, states are raiding rainy day funds and planning for budget cuts.

In their letter endorsing the governors’ request for a FMAP rate hike, 20 organizations that represent a wide range of health care and insurance plans, including the Blue Cross Blue Shield Association, America’s Health Insurance Plans, the American Federation of State, County and Municipal Employees (AFSCME), the Service Employees International Union (SEIU), the American Medical Association, and America’s Health Insurance Plans, cited a Congressional Budget Office forecast that predicted states would face shortfalls of approximately $650 billion in the next three years.

“As a direct result of the COVID-19 pandemic, state leaders will be forced to enact deep Medicaid cuts that could cause millions of Americans to lose access to critical health care services,” they noted. “To avoid these consequences and to protect health care access for over 70 million Americans, we call on Congress to enhance federal financing for the Medicaid program by at least 12 percentage points, with additional support for those states hardest hit by the economic shockwaves.”

The supporters noted that private-sector and government agencies are working together to support “frontline health care heroes, patients, and businesses. Increasing FMAP will support our state leaders, providers, and tens of millions of Americans who depend on Medicaid every day,” they wrote.