In this article, we provide an overview of current financing for Medicaid and the Children’s Health Insurance Program (CHIP). We also note the potential implications of the changing federal Medicaid matching rate landscape from the perspective of the impact to states’ budgets for Medicaid/CHIP spending. We dive into specifics of the federal matching rate with respect to the following:

• Medicaid/CHIP cost of medical services for traditional populations
• Medicaid cost of medical services for newly eligible adults under the Affordable Care Act
• Cost of administrative activities
• The potential changing landscape
• Implications for three different alternatives