The often criticized $830 billion economic stimulus package passed by the Obama administration in 2008 provided, among other things, bonus reimbursement payments for state Medicaid programs. The additional funding was conditioned upon the states not reducing their already existing coverage, and under the program, Medicaid particiaption rose dramatically. It is estimated that the total bonus reimbursments paid to states during the stimulus package, and the additional 4 month $16 billion extension of it, will exceed $100 Billion.
Medicaid is a partnership between states and the Federal Government, with the federal obligation ranging between 50 and 74% of the total cost. Mississippi receives the highest Medicaid reimbursement rate in the country, at 74.73%. As a result of the stimulus package, Mississippi's reimbursement rate rose to 84.9%. That 10% bonus Medicaid reimbursement ended June 30, 2011. It is unclear what Mississippi, whose governor has was extremely critical of the Obama administration's spending policies when he appeared to be a possible presidential candidate, will do to make up this multimillion dollar shortfall.
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