Health Equity
Medicaid Enrollment Touches 39% of the Residents of The District of Columbia; DC’s 70/30 FMAP is Vital for the Maintenance of Health & Human Services
A reduction in the District’s FMAP would not lead to long-term government savings and would have a ripple effect throughout the entire health system in the DMV, crippling access to care for not only Medicaid beneficiaries but also all those who live, work, and visit the District of Columbia, including members of Congress and their staffs.
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Why does DC receive an Enhanced FMAP Rate?
The DC FMAP rate of 70% established by the Revitalization Act resulted from bipartisan analysis, discussion, and negotiation by Congressional leadership aiming to balance fairness with the District’s restricted ability to generate revenue. Congress recognized that the District of Columbia faces unique financial challenges due to its non-state status and the significant amount of federally-owned land within its boundaries. The District is unable to tax non-residents’ earnings, so these workers pay no taxes to support the infrastructure and services, such as roads, public safety and emergency services that they benefit from in the District. The District is also unable to tax up to 40% of the real property within its borders due to statutory restrictions.
Why are we concerned about DC's FMAP now?
Members of Congress have proposed reducing the DC FMAP to the statutory minimum for all other states, which is currently 50% (but could be reduced even more). Such a change would impact every physician and every practice, regardless of type, location, and payers contracted. Even practices who take no insurance will not be able to send patients for specialist care, hospital admissions, or other types of care.
What can MSDC members do?
- If you know a member of Congress or staffer, reach out to them and share how DC cuts will hurt your patients.
- Share your relationships and outreach with hay@msdc.org so we can help coordinate advocacy efforts.
- Email hay@msdc.org if you would like to be paired with a physician member of Congress office and trained by MSDC staff on how to reach out.
Resources
- DC FMAP cut fact sheet
- California Medical Association fact sheet on Medicaid cuts
- MSDC and healthcare association letter to Congress arguing against DC FMAP changes.
- MSDC original story on Medicaid changes.
News, Statements, and Testimony on Health Equity Issues
AMA Study Shows Lack of Health Insurance Competition in U.S.
A new AMA study released yesterday shows the rise of highly concentrated markets for health insurance throughout the U.S.
The study, entitled Competition in Health Insurance: A Comprehensive Study of U.S. Markets, analyzed market concentration and health insurance market shares for 384 metropolitan statistical areas (MSA) and the 50 states plus DC. The study also presented national-level market shares for the 10 largest health insurers in the U.S.
The results show a decline in insurance competition at the state, national, and local level:
- 73% of MSA-level markets were high concentrated according to federal guidelines
- 46% of MSA-level markets had one insurer with a share of 50% or more
- 14 states had one health insurer with a share of 50% or more of the commercial health insurance market
The District is below the national average in terms of market concentration. For DC itself, the insurer with the largest market share (Carefirst) has a 31% share of health insurance product marketplace. The second highest (UnitedHealth Group) has a 20% share. However, DC belongs to the national majority in that a Blue Cross Blue Shield affiliate had the largest state-level market share in 40 states.
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