Provides that, if the federal medical assistance percentage (FMAP) determined under title XIX (Medicaid) of the Social Security Act without regard to this Act for a state for FY2008 is less than the FMAP as so determined for FY2007, the FY2007 FMAP shall be substituted for the FMAP for the third and fourth calendar quarters of FY2008, before the application of this Act.
Provides that, if the FMAP determined without regard to this Act for a state for FY2009 is less than the FMAP as so determined for FY2008, the FY2008 FMAP shall be substituted for the FMAP for the first, second, and third calendar quarters of FY2009, before the application of this Act.
Provides that, for each eligible state for the third and fourth calendar quarters of FY2008, and for the first, second, and third calendar quarters of FY2009, the FMAP shall be increased by 2.95 percentage points.
Provides for an increase in the cap on Medicaid payments to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.
Declares that, only for FMAP computation purposes, any significant disproportionate employer pension or insurance fund contribution shall be disregarded in computing the per capita income of a state, but not in computing the per capita income for the continental United States (and Alaska) and Hawaii.