24 State and Federal Groups Encourage Congress to Restore State Flexibility to Manage Medicaid Budgets

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Naples, FL — The Foundation for Government Accountability (FGA), along with 23 cosigners, sent a letter to congressional leadership today asking for the reversal of the “Maintenance of Effort” (MOE) provision in the Families First Coronavirus Response Act (FFCRA).

The MOE provision requires that states maintain the eligibility of every single person that is currently on or added to the Medicaid program in order to receive supplemental Medicaid funding. This means states are barred from removing ineligible enrollees or taking steps to improve program integrity.

“Now, as Medicaid enrollment is projected to spike by as much as 30 percent or more, Congress has required states to shoulder the financial burden not only of those individuals who are truly eligible, but also those who are not actually eligible for benefits,” the letter reads in part. “We ask that you and your colleagues consider providing states the additional flexibility that they need to manage their state budgets by eliminating this MOE provision from FFCRA.

“Making this change is a surefire way to give fiscal relief to states that does not cost taxpayers or add to the already staggering federal deficit. In fact, it will save billions, without impacting a single person who is truly eligible for Medicaid.”

Read the full letter here.

The following is a complete list of signers:
Alaska Policy Forum
Americans for Prosperity
Americans for Tax Reform
Caesar Rodney Institute
Civitas Institute
Club for Growth
Commonwealth Foundation
Council for Citizens Against Government Waste
Foundation for Government Accountability 
Freedom Foundation of Minnesota
FreedomWorks
Heritage Action for America
Idaho Freedom Foundation
Kansas Policy Institute

MacIver Institute
Maine Policy Institute
Mississippi Center for Public Policy 
Nevada Policy Research Institute
Oklahoma Council of Public Affairs
Palmetto Promise Institute
Pelican Institute for Public Policy
Rio Grande Foundation
Texas Public Policy Foundation
Virginia Institute for Public Policy

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The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit TheFGA.org.