How to use FMAP to supplement foster parent rates?

The Families First Coronavirus Response Act provides child welfare agencies additional funding during the pandemic. Public child welfare agencies have the opportunity to utilize these funds to issue additional support to foster and kinship parents through supplemental rate increases.

Background

The Federal Medicaid Assistance Percentage (FMAP) is used to determine how the federal government shares costs with the states to pay for Medicaid and other programs such as the Title IV-E foster care program. The higher a state’s FMAP, the more federal money the federal government provides. To help states offset some of the high costs of the pandemic, the federal government has temporarily increased states’ FMAP, an increase that could help child welfare agencies raise foster care payments to help young people and families get through this crisis.

Resources

• Federal Guidance: https://www.acf.hhsgov/sites/default/files/cb/im2005.pdf

• The Annie E. Casey Foundation blog post: https://www.aecf.org/blog/some-states-may-be-able-to-increase-foster-parent-payments-during-covid-19/ -

Who's doing this?

Several states have already increased foster and kin rates:

• Kansas: See Guidance.

• Oklahoma: See Guidance.

• New Mexico: See Guidance.

• South Carolina: See Guidance.

Additional Fiscal Resources

• Center for Study of Social Policy, Potential COVID-19 Funding Sources.