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Do Va. $$ Really Go to Other States?



During the debate on Medicaid expansion, we frequently hear the argument from the media and progressive politicians that Virginia money will go to other states, and that we should “bring that money back.”

Let’s look at this idea of bringing more money back to Virginia versus other states.  Here’s what you need to know:

The amount of Medicaid funding a state receives (FMAP) is calculated by a formula that is solely dependent on per-capita income in the state and the nation as a whole:

Personal income is the key variable in the FMAP formula. The formula is based on rolling three-year average per capita income data for each state and the United States, produced by the Department of Commerce’s Bureau of Economic Analysis.4 The Medicaid statute sets forth how a state’s share of Medicaid costs is to be calculated: the state share equals the square of a state’s per capita income divided by the square of U.S. per capita income, multiplied by 0.45. It also defines the federal share as 100 percent minus the state share.


The formula for the state share can be expressed as follows. STATE SHARE = 0.45 x [State Per Capita Income2/U.S. Per Capita Income2] Therefore, the federal share can be expressed as: FMAP= 1 – 0.45 x [State Per Capita Income2/U.S. Per Capita Income2] The formula was established in statute when Medicaid was authorized in 1965″



In other words, Virginia gets the SAME AMOUNT NO MATTER WHAT.

This argument about getting our money back is a RED HERRING. 

Any politician who states this is either uninformed or suppressing the truth.

It is important to remember that expanding Medicaid adds to our National Debt. This is all BORROWING and laying even more debt (enormous debt) on our children, grandchildren, great-grandchildren – generation upon generation. It will leave them a BLEAK economic future and make them vulnerable to other countries. Remember also, we are Federal taxpayers too (well, 47% of us).


In addition, data from the 2010 census indicates that Virginia sends approximately $65 billion to the Federal government but receives $136 billion in Federal spending.


Let your elected representative know you are on to this deception. Tell them to stop the lies and stop holding Virginia’s budget hostage to expansion of a failed program.


Some articles to consider:

Study: Don’t Overlook Medicaid’s Flaws

Ryan to States: Don’t Bet on Obama Medicaid Money