Pharmacy

Washington, Jan 22 -

WASHINGTON – Congresswoman Kathy Castor announced today that the economic recovery plan will direct at least $4.3 billion in health care investments to Florida.  Castor is a member of the Energy & Commerce Committee which is marking up the economic recovery plan today. The $4.3 billion investment comes from an increased federal match for Medicaid which is one of the largest boosts in the country. Castor has been pushing for this increase in health care investments since last year.

“This infusion of dollars is absolutely vital to Florida families and Florida’s economy,” said Castor. “Health care investments create and preserve jobs in the state while ensuring that families receive affordable medical care.” And, economists say infusions of Medicaid dollars are a rapid and effective way to stimulate the economy.

Medicaid serves about 2.2 million Floridians. The Federal Medical Assistance Percentage, or FMAP, is the portion of Medicaid paid by the federal government.

As the economy worsens and state revenue falls, many states, including Florida, cut healthcare spending. State officials have slashed billions of dollars from the state budget during this year’s special session, and they are expected to need to cut billions more later this year.

The additional $4.3 billion in federal Medicaid funds must be spent directly on children, seniors and pregnant women and will have the added benefit of allowing governors to offset cuts in other areas of the state budget.

Florida’s high unemployment rate – topping 7 percent – is one of the reasons the state is slated to receive a high increase in federal Medicaid dollars.

The $4.3 billion increase is included in the $825 billion economic recovery package crafted by President Obama and House leaders. In her position on Energy & Commerce, Castor is helping guide the legislation through the House.

The package also includes help for the newly unemployed. One measure will provide  subsidies for COBRA premiums. A recent Families USA report found that unemployment benefits in Florida don’t even cover the cost of COBRA. Under this bill, newly unemployed workers would receive a 65 percent subsidy for COBRA continuation premiums.

Castor has been a constant champion for Florida to receive additional Medicaid money. The Energy & Commerce Committee is considering the economic recovery package, which President Obama is expected to sign.