Implementation of Section 5001 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) for Adjustments to the Fourth Quarter of Fiscal Year 2010 Federal Medical Assistance Percentage Rates for Federal Matching Shares for Medicaid and Title IV-E Foster Care, Adoption Assistance and Guardianship Assistance Programs, 66763-66766 [2010-27412]

Download as PDF Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than November 15, 2010. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. Marcelo L. Sacomori, London, England; to acquire additional voting shares of Granville Bancshares, Inc., and thereby indirectly acquire additional voting shares of Granville National Bank, both of Granville, Illinois and Sheridan State Bank, Sheridan, Illinois. B. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198–0001: 1. Larry L. Bingham, Baxter Springs, Kansas; Ross C. Hartley, Teton Village, Wyoming; Fred Mitchelson, Pittsburg, Kansas; and Bob L. Robinson, Baxter Springs, Kansas; to acquire control of American BancShares, Inc., and thereby indirectly acquire control of American Bank of Baxter Springs, both of Baxter Springs, Kansas. Board of Governors of the Federal Reserve System, October 26, 2010. Board, are available for immediate inspection at the Federal Reserve Bank indicated. The application also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than November 26, 2010. A. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198–0001: 1. JRMB II, Inc., Lawton, Oklahoma; to become a bank holding company by acquiring 82.97 percent of the voting shares of J.R. Montgomery Bancorporation, Lawton, Oklahoma, and thereby indirectly acquire voting shares of City National Bank and Trust Company, Lawton, Oklahoma, and Fort Sill National Bank, Fort Sill, Oklahoma. Board of Governors of the Federal Reserve System, October 26, 2010. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 2010–27377 Filed 10–28–10; 8:45 am] BILLING CODE 6210–01–P Robert deV. Frierson, Deputy Secretary of the Board. DEPARTMENT OF HEALTH AND HUMAN SERVICES [FR Doc. 2010–27375 Filed 10–28–10; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM WReier-Aviles on DSKGBLS3C1PROD with NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the VerDate Mar<15>2010 15:23 Oct 28, 2010 Jkt 223001 Implementation of Section 5001 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111–5) for Adjustments to the Fourth Quarter of Fiscal Year 2010 Federal Medical Assistance Percentage Rates for Federal Matching Shares for Medicaid and Title IV–E Foster Care, Adoption Assistance and Guardianship Assistance Programs Office of the Secretary, DHHS. Notice. AGENCY: ACTION: This notice provides the adjusted Federal Medical Assistance Percentage (FMAP) rate for the fourth quarter of Fiscal Year 2010 (FY10) as required under Section 5001 of the American Recovery and Reinvestment Act of 2009 (ARRA). Section 5001 of the ARRA provides for temporary increases SUMMARY: PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 66763 in the FMAP rates to provide fiscal relief to States and to protect and maintain State Medicaid and certain other assistance programs in a period of economic downturn. The increased FMAP rates apply during a recession adjustment period that was originally defined in ARRA as the period beginning October 1, 2008 and ending December 31, 2010. Public Law 111–226 amended ARRA to extend the recession adjustment period to June 30, 2011 and to extend the hold harmless provision that prevents a State’s FMAP rate from decreasing due to a lower unemployment rate from the calendar quarter ending before July 1, 2010 to the calendar quarter ending before January 1, 2011. Public Law 111–226 also provided for a phase-down of the general FMAP increase in the last two quarters of the extended recession adjustment period, and changed the methodology for calculating the unemployment adjustment for those quarters. DATES: Effective Date: The percentages listed are for the fourth quarter of FY10 beginning July 1, 2010 through September 30, 2010. A. Background The FMAP is used to determine the amount of Federal matching for specified State expenditures for assistance payments under programs under the Social Security Act (‘‘the Act’’). Sections 1905(b) and 1101(a)(8)(B) of the Act require the Secretary of Health and Human Services to publish the FMAP rates each year. The Secretary calculates the percentages using formulas in sections 1905(b) and 1101(a)(8)(B), and statistics from the Department of Commerce of average income per person in each State and for the Nation as a whole. The percentages must be within the upper and lower limits given in section 1905(b) of the Act. The percentages to be applied to the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands are specified separately in the Act, and thus are not based on the statutory formula that determines the percentages for the 50 States. Section 1905(b) of the Act specifies the formula for calculating the FMAP as follows: The FMAP for any State shall be 100 per centum less the State percentage; and the State percentage shall be that percentage which bears the same ratio to 45 per centum as the square of the per capita income of such State bears to the square of the per capita income of the continental United States (including Alaska) and Hawaii; except that (1) the FMAP shall in no case be less than E:\FR\FM\29OCN1.SGM 29OCN1 66764 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 50 per centum or more than 83 per centum, and (2) the FMAP for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa shall be 50 per centum. WReier-Aviles on DSKGBLS3C1PROD with NOTICES Section 4725 of the Balanced Budget Act of 1997 amended section 1905(b) to provide that the FMAP for the District of Columbia for purposes of titles XIX (Medicaid) and XXI (CHIP) shall be 70 percent. The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) (Pub. L. 110–275) amended the FMAP applied to the District of Columbia for maintenance payments under title IV–E programs to make it consistent with the 70 percent Medicaid match rate. Section 5001 of Division B of the ARRA provides for a temporary increase in FMAP rates for Medicaid and title IV–E Foster Care, Adoption Assistance and Guardianship Assistance programs. The purpose of the increases to the FMAP rates is to provide fiscal relief to States and to protect and maintain State Medicaid and certain other assistance programs in a period of economic downturn, referred to as the ‘‘recession adjustment period.’’ The recession adjustment period is defined as the period beginning October 1, 2008 and ending December 31, 2010. Public Law 111–226 extends the recession adjustment period to June 30, 2011. B. Calculation of the Increased FMAP Rates Under ARRA Section 5001 of the ARRA specifies that the FMAP rates shall be temporarily increased for the following: (1) Maintenance of FMAP rates for FY09, FY10, and the first three calendar quarters of FY11, so that the FMAP rate will not decrease from the prior year, determined by using as the FMAP rate for the current year, the greater of any prior fiscal year FMAP rates between 2008–2010 or the rate calculated for the current fiscal year; (2) in addition to any maintenance increase, the application of a general percentage point increase in each State’s FMAP of 6.2 percentage points (decreasing during the last two quarters of the extended recession adjustment period); and (3) an additional percentage point increase based on the State’s increase in unemployment during the recession adjustment period. The resulting increased FMAP cannot exceed 100 percent. Each State’s FMAP will be recalculated each fiscal quarter beginning October 2008. Availability of certain components of the increased FMAP is conditioned on States meeting statutory programmatic requirements, such as the maintenance of effort requirement, which are not part of the calculation process. VerDate Mar<15>2010 15:23 Oct 28, 2010 Jkt 223001 Expenditures for which the increased FMAP is not available under title XIX include expenditures for disproportionate share hospital payments, certain eligibility expansions, services received through an IHS or Tribal facility (which are already paid at a rate of 100 percent and therefore not subject to increase), and expenditures that are paid at an enhanced FMAP rate. The increased FMAP is available for expenditures under part E of title IV (including Foster Care, Adoption Assistance and Guardianship Assistance programs) only to the extent of a maintenance increase (hold harmless), if any, and the general percentage point increase. The increased FMAP does not apply to other parts of title IV, including part D (Child Support Enforcement Program). For title XIX purposes only, for each qualifying State with an unemployment rate that has increased at a rate above the statutory threshold percentage, ARRA provides additional relief above the general percentage point increase in FMAP through application of a separate increase calculation. For those States, the FMAP for each qualifying State is increased by the number of percentage points equal to the product of the State matching percentage (as calculated under section 1905(b) and adjusted if necessary for the maintenance of FMAP without reduction from the prior year, and after applying half of the general percentage point increase in the Federal percentage) and the applicable percent determined from the State unemployment increase percentage for the quarter. The unemployment increase percentage for calendar quarters other than the last two quarters of the recession adjustment period is equal to the number of percentage points (if any) by which the average monthly unemployment rate for the State in the most recent previous 3-consecutivemonth period for which data are available exceeds the lowest average monthly unemployment rate for the State for any 3-consecutive-month period beginning on or after January 1, 2006. A State qualifies for additional relief based on an increase in unemployment if that State’s unemployment increase percentage is at least 1.5 percentage points. A different but related methodology for an unemployment adjustment applies for the last two quarters of the recession adjustment period. The applicable percent is: (1) 5.5 percent if the State unemployment increase percentage is at least 1.5 percentage points but less than 2.5 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 percentage points; (2) 8.5 percent if the State unemployment increase percentage is at least 2.5 percentage points but less than 3.5 percentage points; and (3) 11.5 percent if the State unemployment increase percentage is at least 3.5 percentage points. If the State’s applicable percent is less than the applicable percent for the preceding quarter, then the higher applicable percent shall continue in effect for any calendar quarter beginning on or after January 1, 2009 and ending before January 1, 2011, as amended by Public Law 111–226. This hold harmless provision is not in effect from January 1, 2011 to June 30, 2011. Under section 5001(b)(2) of ARRA, Puerto Rico, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and America Samoa were given the option to make a special one-time election between (1) a 30 percent increase in their cap on Medicaid payments (as determined under subsections (f) and (g) of section 1108 of the Act), or (2) applying the general 6.2 percentage point increase in the FMAP plus a 15 percent increase in the cap on Medicaid payments. There is no quarterly unemployment adjustment for territories. All territories and the Commonwealth of the Northern Mariana Islands elected the 30 percent increase in their spending cap on Medicaid payments; therefore there is no recalculation of their FMAP rate. D. Adjusted FMAPs for the Fourth Quarter of FY2010 ARRA adjustments to FMAPs are shown by State in the accompanying table. The hold harmless FY10 FMAP is the higher of the original FY08, FY09, or FY10 FMAP. The 6.2 percentage point increase is added to the hold harmless FY10 FMAP. The unemployment adjustment is calculated according to the unemployment tier and added to the hold harmless FY10 FMAP with the 6.2 percentage point increase. For the fourth quarter of FY10, the unemployment tier is determined by comparing the average unemployment rate for the three consecutive months preceding the start of the fiscal quarter to the lowest consecutive 3-month average unemployment rate beginning January 1, 2006. If the State’s applicable percent is less than the applicable percent for the third quarter of FY10, then the higher applicable percent shall continue for the fourth quarter of FY10. As indicated in the August 4, 2009 Federal Register Notice that proposed the methodology for the FMAP unemployment adjustment calculations (74 FR 38630), we utilize annual updates to the historical Bureau of E:\FR\FM\29OCN1.SGM 29OCN1 66765 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices Labor Statistics (BLS) data to make changes to the States’ lowest unemployment rate beginning with the fourth quarter FMAP rate adjustment calculation each year. As such, the rates calculated and presented in the accompanying table are based on updates to the historical BLS data used to determine the States’ average lowest unemployment rate for any 3 (Catalog of Federal Domestic Assistance Program Nos. 93.778: Medical Assistance Program; 93.658: Foster Care; 93.659: Adoption Assistance; 93.090: Guardianship Assistance) consecutive months beginning January 1, 2006. FOR FURTHER INFORMATION CONTACT: Carrie Shelton or Thomas Musco, Office of Health Policy, Office of the Assistant Secretary for Planning and Evaluation, Room 447D—Hubert H. Humphrey Building, 200 Independence Avenue, SW., Washington, DC 20201, (202) 690– 6870. Dated: September 22, 2010. Kathleen Sebelius, Secretary. ARRA ADJUSTMENTS TO FMAP Q4 FY10 Hold harmless FY10 WReier-Aviles on DSKGBLS3C1PROD with NOTICES State Hold harmless FY10 FMAP with 6.2% pt increase 4th Quarter FY10 unemployment tier 4th Quarter FY10 unemployment adjustment 4th Quarter FY10 FMAP unemployment adjustment 4th Quarter FY10 FMAP unemployment hold harmless 68.01 52.48 66.20 72.94 50.00 50.00 50.00 50.21 70.00 56.83 65.10 56.50 69.87 50.32 65.93 63.51 60.38 70.96 72.47 64.99 50.00 50.00 63.19 50.00 76.29 64.51 68.53 60.56 52.64 50.00 50.00 71.35 50.00 65.13 63.75 63.42 67.10 62.74 54.81 52.63 70.32 62.72 65.57 60.56 71.68 59.45 50.00 51.52 74.25 60.21 50.00 74.21 58.68 72.40 79.14 56.20 56.20 56.20 56.41 76.20 63.03 71.30 62.70 76.07 56.52 72.13 69.71 66.58 77.16 78.67 71.19 56.20 56.20 69.39 56.20 82.49 70.71 74.73 66.76 58.84 56.20 56.20 77.55 56.20 71.33 69.95 69.62 73.30 68.94 61.01 58.83 76.52 68.92 71.77 66.76 77.88 65.65 56.20 57.72 80.45 66.41 56.20 11.5 5.5 11.5 8.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 8.5 8.5 11.5 8.5 11.5 11.5 11.5 11.5 8.5 11.5 11.5 11.5 5.5 11.5 8.5 11.5 11.5 11.5 11.5 0 11.5 11.5 11.5 11.5 11.5 11.5 5.5 11.5 11.5 11.5 8.5 11.5 11.5 11.5 11.5 11.5 3.32 2.44 3.53 2.04 5.39 5.39 5.39 5.37 3.09 4.61 3.66 4.65 3.11 5.36 3.56 2.84 3.10 2.98 2.08 3.67 5.39 5.39 3.88 3.99 2.37 3.72 3.26 2.00 5.09 3.99 5.39 2.94 5.39 3.65 0.00 3.85 3.43 3.93 4.84 5.09 3.06 1.88 3.60 4.18 2.90 3.18 5.39 5.22 2.60 4.22 5.39 77.53 61.12 75.93 81.18 61.59 61.59 61.59 61.78 79.29 67.64 74.96 67.35 79.18 61.88 75.69 72.55 69.68 80.14 80.75 74.86 61.59 61.59 73.27 60.19 84.86 74.43 77.99 68.76 63.93 60.19 61.59 80.49 61.59 74.98 69.95 73.47 76.73 72.87 65.85 63.92 79.58 70.80 75.37 70.94 80.78 68.83 61.59 62.94 83.05 70.63 61.59 77.53 62.46 75.93 81.18 61.59 61.59 61.59 61.78 79.29 67.64 74.96 67.35 79.18 61.88 75.69 72.55 69.68 80.14 81.48 74.86 61.59 61.59 73.27 61.59 84.86 74.43 77.99 68.76 63.93 61.59 61.59 80.49 61.59 74.98 69.95 73.47 76.73 72.87 65.85 63.92 79.58 70.80 75.37 70.94 80.78 69.96 61.59 62.94 83.05 70.63 61.59 Alabama ................................................... Alaska ...................................................... Arizona ..................................................... Arkansas .................................................. California .................................................. Colorado ................................................... Connecticut .............................................. Delaware .................................................. Dist. of Columbia ..................................... Florida ...................................................... Georgia .................................................... Hawaii ...................................................... Idaho ........................................................ Illinois ....................................................... Indiana ..................................................... Iowa .......................................................... Kansas ..................................................... Kentucky .................................................. Louisiana .................................................. Maine ....................................................... Maryland .................................................. Massachusetts ......................................... Michigan ................................................... Minnesota ................................................. Mississippi ................................................ Missouri .................................................... Montana ................................................... Nebraska .................................................. Nevada ..................................................... New Hampshire ....................................... New Jersey .............................................. New Mexico ............................................. New York ................................................. North Carolina .......................................... North Dakota ............................................ Ohio .......................................................... Oklahoma ................................................. Oregon ..................................................... Pennsylvania ............................................ Rhode Island ............................................ South Carolina ......................................... South Dakota ........................................... Tennessee ............................................... Texas ....................................................... Utah .......................................................... Vermont .................................................... Virginia ..................................................... Washington .............................................. West Virginia ............................................ Wisconsin ................................................. Wyoming .................................................. VerDate Mar<15>2010 15:23 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00050 Fmt 4703 Sfmt 9990 E:\FR\FM\29OCN1.SGM 29OCN1 66766 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices BILLING CODE 4150–05–P DEPARTMENT OF HEALTH AND HUMAN SERVICES NIAID Blue Ribbon Panel Meeting on Adjuvant Discovery and Development Notice is hereby given that the National Institute of Allergy and Infectious Diseases (NIAID), a component of the National Institutes of Health (NIH) of the Department of Health and Human Services (DHHS), will convene a Blue Ribbon Panel to provide expertise in developing a strategic plan and research agenda for the discovery, development and clinical evaluation of adjuvants for use with preventive vaccines. NIAID has developed a draft Strategic Plan and Research Agenda for Adjuvant Discovery and Development, which summarizes the current status of research in the field of preventive vaccine adjuvants, identifies gaps in knowledge and capabilities, and defines NIAID’s goals for the continued discovery, development and application of adjuvants for human vaccines that protect against infectious disease. The Panel will review the draft Strategic Plan and Research Agenda and recommend ways the NIAID can enhance its adjuvant research programs. DATES: November 17–18, 2010. ADDRESSES: The meeting location is: Rockville—Hilton Hotel (Roosevelt Room), 1750 Rockville Pike, Rockville, MD 20850. FOR FURTHER INFORMATION CONTACT: Ms. Grace Tollini-Farrell, 301–496–7551. Dated: October 21, 2010. Daniel Rotrosen, Director, Division of Allergy, Immunology and Transplantation, NIAID, National Institutes of Health. BILLING CODE 4140–01–P WReier-Aviles on DSKGBLS3C1PROD with NOTICES National Institute of Environmental Health Sciences (NIEHS), National Institutes of Health, HHS. ACTION: Extension of public comment period. Jkt 223001 BILLING CODE 4140–01–P [Document Identifier: CMS–10319] National Toxicology Program (NTP); Office of Liaison, Policy and Review; Meeting of the NTP Board of Scientific Counselors: Amended Notice 15:23 Oct 28, 2010 [FR Doc. 2010–27424 Filed 10–28–10; 8:45 am] Centers for Medicare & Medicaid Services DEPARTMENT OF HEALTH AND HUMAN SERVICES VerDate Mar<15>2010 Dated: October 21, 2010. John R. Bucher, Associate Director, National Toxicology Program. DEPARTMENT OF HEALTH AND HUMAN SERVICES [FR Doc. 2010–27317 Filed 10–28–10; 8:45 am] AGENCY: The NTP announces an amended date for submission of written public comments for the November 30– December 1, 2010 meeting of the NTP Board of Scientific Counselors (BSC). Information regarding the BSC meeting was published on October 19, 2010, in the Federal Register (75 FR 201) and is available on the BSC meeting page (https://ntp.niehs.nih.gov/go/165). The guidelines and deadlines published in this Federal Register notice still apply, except that the deadline for submission of written comments is extended to November 16, 2010. DATES: The BSC meeting will be held on November 30–December 1, 2010. The deadline for submission of written comments and for pre-registration to attend the meeting, including registering to present oral comments, is November 16, 2010. ADDRESSES: The BSC meeting will be held in the Rodbell Auditorium, Rall Building at the NIEHS, 111 T.W. Alexander Drive, Research Triangle Park, NC 27709. Public comments on all agenda topics and any other correspondence should be submitted to Dr. Lori White, Designated Federal Officer for the BSC, NTP Office of Liaison, Policy and Review, NIEHS, P.O. Box 12233, K2–03, Research Triangle Park, NC 27709; telephone: 919–541– 9834; fax: 919–541–0295; whiteld@niehs.nih.gov. Courier address: NIEHS, 530 Davis Drive, Room K2136, Morrisville, NC 27560. FOR FURTHER INFORMATION CONTACT: Dr. Lori D. White (telephone: 919–541–9834 or whiteld@niehs.nih.gov). SUMMARY: [FR Doc. 2010–27412 Filed 10–28–10; 8:45 am] Agency Information Collection Activities: Proposed Collection; Comment Request Centers for Medicare & Medicaid Services, HHS. In compliance with the requirement of section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, the Centers for Medicare & Medicaid Services (CMS) is publishing the following summary of proposed AGENCY: PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 collections for public comment. Interested persons are invited to send comments regarding this burden estimate or any other aspect of this collection of information, including any of the following subjects: (1) The necessity and utility of the proposed information collection for the proper performance of the agency’s functions; (2) the accuracy of the estimated burden; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) the use of automated collection techniques or other forms of information technology to minimize the information collection burden. 1. Type of Information Collection Request: Extension of a currently approved collection; Title of Information Collection: Pre-Existing Condition Insurance Plan Program Solicitation and Contractor’s Proposal Package; Use: The Department of Health and Human Services (HHS) is requesting a renewal of this package by the Office of Management and Budget (OMB); specifically, HHS is now seeking a three-year approval for this collection. On March 23, 2010, the President signed into law H.R. 3590, the Patient Protection and Affordable Care Act (Affordable Care Act), Public Law 111– 148. Section 1101 of the law establishes a ‘‘temporary high risk health insurance pool program’’ (which has been named the Pre-Existing Condition Insurance Plan, or PCIP) to provide health insurance coverage to currently uninsured individuals with pre-existing conditions. The law authorizes HHS to carry out the program directly or through contracts with States or private, non-profit entities. This package renewal is requested as a result of a possible transition in administration of the program from a Federally-run to a State administered program. A State who originally decided to have HHS administer the program in their State may in the future notify HHS of their desire to administer the PreExisting Condition Plan (PCIP) program. PCIP is also referred to as the temporary qualified high risk insurance pool program, as it is called in the Affordable Care Act, but we have adopted the term PCIP to better describe the program and avoid confusion with the existing State high risk pool programs. Form Number: CMS–10319 (OMB#: 0938–1085); Frequency: Occasionally; Affected Public: State governments; Number of Respondents: 2; Total Annual Responses: 2; Total Annual Hours: 2,992. (For policy questions regarding this collection contact Laura Dash at 301–492–4296. For all other issues call 410–786–1326.) E:\FR\FM\29OCN1.SGM 29OCN1

Agencies

[Federal Register Volume 75, Number 209 (Friday, October 29, 2010)]
[Notices]
[Pages 66763-66766]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-27412]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES


Implementation of Section 5001 of the American Recovery and 
Reinvestment Act of 2009 (Pub. L. 111-5) for Adjustments to the Fourth 
Quarter of Fiscal Year 2010 Federal Medical Assistance Percentage Rates 
for Federal Matching Shares for Medicaid and Title IV-E Foster Care, 
Adoption Assistance and Guardianship Assistance Programs

AGENCY: Office of the Secretary, DHHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice provides the adjusted Federal Medical Assistance 
Percentage (FMAP) rate for the fourth quarter of Fiscal Year 2010 
(FY10) as required under Section 5001 of the American Recovery and 
Reinvestment Act of 2009 (ARRA). Section 5001 of the ARRA provides for 
temporary increases in the FMAP rates to provide fiscal relief to 
States and to protect and maintain State Medicaid and certain other 
assistance programs in a period of economic downturn. The increased 
FMAP rates apply during a recession adjustment period that was 
originally defined in ARRA as the period beginning October 1, 2008 and 
ending December 31, 2010. Public Law 111-226 amended ARRA to extend the 
recession adjustment period to June 30, 2011 and to extend the hold 
harmless provision that prevents a State's FMAP rate from decreasing 
due to a lower unemployment rate from the calendar quarter ending 
before July 1, 2010 to the calendar quarter ending before January 1, 
2011. Public Law 111-226 also provided for a phase-down of the general 
FMAP increase in the last two quarters of the extended recession 
adjustment period, and changed the methodology for calculating the 
unemployment adjustment for those quarters.

DATES: Effective Date: The percentages listed are for the fourth 
quarter of FY10 beginning July 1, 2010 through September 30, 2010.

A. Background

    The FMAP is used to determine the amount of Federal matching for 
specified State expenditures for assistance payments under programs 
under the Social Security Act (``the Act''). Sections 1905(b) and 
1101(a)(8)(B) of the Act require the Secretary of Health and Human 
Services to publish the FMAP rates each year. The Secretary calculates 
the percentages using formulas in sections 1905(b) and 1101(a)(8)(B), 
and statistics from the Department of Commerce of average income per 
person in each State and for the Nation as a whole. The percentages 
must be within the upper and lower limits given in section 1905(b) of 
the Act. The percentages to be applied to the District of Columbia, 
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern 
Mariana Islands are specified separately in the Act, and thus are not 
based on the statutory formula that determines the percentages for the 
50 States.
    Section 1905(b) of the Act specifies the formula for calculating 
the FMAP as follows:

    The FMAP for any State shall be 100 per centum less the State 
percentage; and the State percentage shall be that percentage which 
bears the same ratio to 45 per centum as the square of the per 
capita income of such State bears to the square of the per capita 
income of the continental United States (including Alaska) and 
Hawaii; except that (1) the FMAP shall in no case be less than

[[Page 66764]]

50 per centum or more than 83 per centum, and (2) the FMAP for 
Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, 
and American Samoa shall be 50 per centum.

    Section 4725 of the Balanced Budget Act of 1997 amended section 
1905(b) to provide that the FMAP for the District of Columbia for 
purposes of titles XIX (Medicaid) and XXI (CHIP) shall be 70 percent. 
The Medicare Improvements for Patients and Providers Act of 2008 
(MIPPA) (Pub. L. 110-275) amended the FMAP applied to the District of 
Columbia for maintenance payments under title IV-E programs to make it 
consistent with the 70 percent Medicaid match rate.
    Section 5001 of Division B of the ARRA provides for a temporary 
increase in FMAP rates for Medicaid and title IV-E Foster Care, 
Adoption Assistance and Guardianship Assistance programs. The purpose 
of the increases to the FMAP rates is to provide fiscal relief to 
States and to protect and maintain State Medicaid and certain other 
assistance programs in a period of economic downturn, referred to as 
the ``recession adjustment period.'' The recession adjustment period is 
defined as the period beginning October 1, 2008 and ending December 31, 
2010. Public Law 111-226 extends the recession adjustment period to 
June 30, 2011.

B. Calculation of the Increased FMAP Rates Under ARRA

    Section 5001 of the ARRA specifies that the FMAP rates shall be 
temporarily increased for the following: (1) Maintenance of FMAP rates 
for FY09, FY10, and the first three calendar quarters of FY11, so that 
the FMAP rate will not decrease from the prior year, determined by 
using as the FMAP rate for the current year, the greater of any prior 
fiscal year FMAP rates between 2008-2010 or the rate calculated for the 
current fiscal year; (2) in addition to any maintenance increase, the 
application of a general percentage point increase in each State's FMAP 
of 6.2 percentage points (decreasing during the last two quarters of 
the extended recession adjustment period); and (3) an additional 
percentage point increase based on the State's increase in unemployment 
during the recession adjustment period. The resulting increased FMAP 
cannot exceed 100 percent. Each State's FMAP will be recalculated each 
fiscal quarter beginning October 2008. Availability of certain 
components of the increased FMAP is conditioned on States meeting 
statutory programmatic requirements, such as the maintenance of effort 
requirement, which are not part of the calculation process.
    Expenditures for which the increased FMAP is not available under 
title XIX include expenditures for disproportionate share hospital 
payments, certain eligibility expansions, services received through an 
IHS or Tribal facility (which are already paid at a rate of 100 percent 
and therefore not subject to increase), and expenditures that are paid 
at an enhanced FMAP rate. The increased FMAP is available for 
expenditures under part E of title IV (including Foster Care, Adoption 
Assistance and Guardianship Assistance programs) only to the extent of 
a maintenance increase (hold harmless), if any, and the general 
percentage point increase. The increased FMAP does not apply to other 
parts of title IV, including part D (Child Support Enforcement 
Program).
    For title XIX purposes only, for each qualifying State with an 
unemployment rate that has increased at a rate above the statutory 
threshold percentage, ARRA provides additional relief above the general 
percentage point increase in FMAP through application of a separate 
increase calculation. For those States, the FMAP for each qualifying 
State is increased by the number of percentage points equal to the 
product of the State matching percentage (as calculated under section 
1905(b) and adjusted if necessary for the maintenance of FMAP without 
reduction from the prior year, and after applying half of the general 
percentage point increase in the Federal percentage) and the applicable 
percent determined from the State unemployment increase percentage for 
the quarter.
    The unemployment increase percentage for calendar quarters other 
than the last two quarters of the recession adjustment period is equal 
to the number of percentage points (if any) by which the average 
monthly unemployment rate for the State in the most recent previous 3-
consecutive-month period for which data are available exceeds the 
lowest average monthly unemployment rate for the State for any 3-
consecutive-month period beginning on or after January 1, 2006.
    A State qualifies for additional relief based on an increase in 
unemployment if that State's unemployment increase percentage is at 
least 1.5 percentage points. A different but related methodology for an 
unemployment adjustment applies for the last two quarters of the 
recession adjustment period.
    The applicable percent is: (1) 5.5 percent if the State 
unemployment increase percentage is at least 1.5 percentage points but 
less than 2.5 percentage points; (2) 8.5 percent if the State 
unemployment increase percentage is at least 2.5 percentage points but 
less than 3.5 percentage points; and (3) 11.5 percent if the State 
unemployment increase percentage is at least 3.5 percentage points.
    If the State's applicable percent is less than the applicable 
percent for the preceding quarter, then the higher applicable percent 
shall continue in effect for any calendar quarter beginning on or after 
January 1, 2009 and ending before January 1, 2011, as amended by Public 
Law 111-226. This hold harmless provision is not in effect from January 
1, 2011 to June 30, 2011.
    Under section 5001(b)(2) of ARRA, Puerto Rico, the Virgin Islands, 
Guam, the Commonwealth of the Northern Mariana Islands, and America 
Samoa were given the option to make a special one-time election between 
(1) a 30 percent increase in their cap on Medicaid payments (as 
determined under subsections (f) and (g) of section 1108 of the Act), 
or (2) applying the general 6.2 percentage point increase in the FMAP 
plus a 15 percent increase in the cap on Medicaid payments. There is no 
quarterly unemployment adjustment for territories. All territories and 
the Commonwealth of the Northern Mariana Islands elected the 30 percent 
increase in their spending cap on Medicaid payments; therefore there is 
no recalculation of their FMAP rate.

D. Adjusted FMAPs for the Fourth Quarter of FY2010

    ARRA adjustments to FMAPs are shown by State in the accompanying 
table. The hold harmless FY10 FMAP is the higher of the original FY08, 
FY09, or FY10 FMAP. The 6.2 percentage point increase is added to the 
hold harmless FY10 FMAP. The unemployment adjustment is calculated 
according to the unemployment tier and added to the hold harmless FY10 
FMAP with the 6.2 percentage point increase.
    For the fourth quarter of FY10, the unemployment tier is determined 
by comparing the average unemployment rate for the three consecutive 
months preceding the start of the fiscal quarter to the lowest 
consecutive 3-month average unemployment rate beginning January 1, 
2006. If the State's applicable percent is less than the applicable 
percent for the third quarter of FY10, then the higher applicable 
percent shall continue for the fourth quarter of FY10.
    As indicated in the August 4, 2009 Federal Register Notice that 
proposed the methodology for the FMAP unemployment adjustment 
calculations (74 FR 38630), we utilize annual updates to the historical 
Bureau of

[[Page 66765]]

Labor Statistics (BLS) data to make changes to the States' lowest 
unemployment rate beginning with the fourth quarter FMAP rate 
adjustment calculation each year. As such, the rates calculated and 
presented in the accompanying table are based on updates to the 
historical BLS data used to determine the States' average lowest 
unemployment rate for any 3 consecutive months beginning January 1, 
2006.

FOR FURTHER INFORMATION CONTACT: Carrie Shelton or Thomas Musco, Office 
of Health Policy, Office of the Assistant Secretary for Planning and 
Evaluation, Room 447D--Hubert H. Humphrey Building, 200 Independence 
Avenue, SW., Washington, DC 20201, (202) 690-6870.

(Catalog of Federal Domestic Assistance Program Nos. 93.778: Medical 
Assistance Program; 93.658: Foster Care; 93.659: Adoption 
Assistance; 93.090: Guardianship Assistance)

    Dated: September 22, 2010.
Kathleen Sebelius,
Secretary.

                                                            ARRA Adjustments to FMAP Q4 FY10
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Hold harmless    4th Quarter     4th Quarter     4th Quarter     4th Quarter
                                                           Hold harmless  FY10 FMAP with       FY10            FY10          FY10 FMAP       FY10 FMAP
                          State                                FY10           6.2% pt      unemployment    unemployment    unemployment    unemployment
                                                                             increase          tier         adjustment      adjustment     hold harmless
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.................................................           68.01           74.21            11.5            3.32           77.53           77.53
Alaska..................................................           52.48           58.68             5.5            2.44           61.12           62.46
Arizona.................................................           66.20           72.40            11.5            3.53           75.93           75.93
Arkansas................................................           72.94           79.14             8.5            2.04           81.18           81.18
California..............................................           50.00           56.20            11.5            5.39           61.59           61.59
Colorado................................................           50.00           56.20            11.5            5.39           61.59           61.59
Connecticut.............................................           50.00           56.20            11.5            5.39           61.59           61.59
Delaware................................................           50.21           56.41            11.5            5.37           61.78           61.78
Dist. of Columbia.......................................           70.00           76.20            11.5            3.09           79.29           79.29
Florida.................................................           56.83           63.03            11.5            4.61           67.64           67.64
Georgia.................................................           65.10           71.30            11.5            3.66           74.96           74.96
Hawaii..................................................           56.50           62.70            11.5            4.65           67.35           67.35
Idaho...................................................           69.87           76.07            11.5            3.11           79.18           79.18
Illinois................................................           50.32           56.52            11.5            5.36           61.88           61.88
Indiana.................................................           65.93           72.13            11.5            3.56           75.69           75.69
Iowa....................................................           63.51           69.71             8.5            2.84           72.55           72.55
Kansas..................................................           60.38           66.58             8.5            3.10           69.68           69.68
Kentucky................................................           70.96           77.16            11.5            2.98           80.14           80.14
Louisiana...............................................           72.47           78.67             8.5            2.08           80.75           81.48
Maine...................................................           64.99           71.19            11.5            3.67           74.86           74.86
Maryland................................................           50.00           56.20            11.5            5.39           61.59           61.59
Massachusetts...........................................           50.00           56.20            11.5            5.39           61.59           61.59
Michigan................................................           63.19           69.39            11.5            3.88           73.27           73.27
Minnesota...............................................           50.00           56.20             8.5            3.99           60.19           61.59
Mississippi.............................................           76.29           82.49            11.5            2.37           84.86           84.86
Missouri................................................           64.51           70.71            11.5            3.72           74.43           74.43
Montana.................................................           68.53           74.73            11.5            3.26           77.99           77.99
Nebraska................................................           60.56           66.76             5.5            2.00           68.76           68.76
Nevada..................................................           52.64           58.84            11.5            5.09           63.93           63.93
New Hampshire...........................................           50.00           56.20             8.5            3.99           60.19           61.59
New Jersey..............................................           50.00           56.20            11.5            5.39           61.59           61.59
New Mexico..............................................           71.35           77.55            11.5            2.94           80.49           80.49
New York................................................           50.00           56.20            11.5            5.39           61.59           61.59
North Carolina..........................................           65.13           71.33            11.5            3.65           74.98           74.98
North Dakota............................................           63.75           69.95               0            0.00           69.95           69.95
Ohio....................................................           63.42           69.62            11.5            3.85           73.47           73.47
Oklahoma................................................           67.10           73.30            11.5            3.43           76.73           76.73
Oregon..................................................           62.74           68.94            11.5            3.93           72.87           72.87
Pennsylvania............................................           54.81           61.01            11.5            4.84           65.85           65.85
Rhode Island............................................           52.63           58.83            11.5            5.09           63.92           63.92
South Carolina..........................................           70.32           76.52            11.5            3.06           79.58           79.58
South Dakota............................................           62.72           68.92             5.5            1.88           70.80           70.80
Tennessee...............................................           65.57           71.77            11.5            3.60           75.37           75.37
Texas...................................................           60.56           66.76            11.5            4.18           70.94           70.94
Utah....................................................           71.68           77.88            11.5            2.90           80.78           80.78
Vermont.................................................           59.45           65.65             8.5            3.18           68.83           69.96
Virginia................................................           50.00           56.20            11.5            5.39           61.59           61.59
Washington..............................................           51.52           57.72            11.5            5.22           62.94           62.94
West Virginia...........................................           74.25           80.45            11.5            2.60           83.05           83.05
Wisconsin...............................................           60.21           66.41            11.5            4.22           70.63           70.63
Wyoming.................................................           50.00           56.20            11.5            5.39           61.59           61.59
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 66766]]

[FR Doc. 2010-27412 Filed 10-28-10; 8:45 am]
BILLING CODE 4150-05-P
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