The 2009 American Recovery Act and what it means for individuals with disabilities
As of August 28, 2009, the Federal government had gifted the states more than $26 billion that can only be spent on Medicaid. These are stimulus funds that can't be spent on anything else, and cannot be put into the state's general fund.
The individual states have each received from millions to over $1 billion each from these funds. The American Recovery Act passed by Congress in February 2009 created an opportunity to boost the federal medical assistance percentages (FMAP), allowing the states to pay a significantly lower proportion of every dollar in their medicaid budgets.
Payments to the states were made retroactive to 2008, allowing an immediate influx of unexpected funds into state coffers.
It's worked in the sense the money is in state bank accounts.
However, two states (Alaska and Kentucky) remain under federal investigation for medicaid program cuts that targeted people with disabilities, and eight other states either have (seven) or are soon to file civil suits alleging similar medicaid budget cuts are civil rights violations.
These are our taxpayer dollars, and we have a responsibility both to the children and adults with special health care needs that we love and the rest of our national of fellow-taxpayers, to make sure these funds are being spent, shall we say, "responsibly."
The information is all online, you just have to navigate through it. I've uploaded a spreadsheet that is up to date as of August 7, 2009, and here is some of what I found:
Hawaii had received $223. Of that amount, $130 million can only be used for Medicaid. Hawaii's state recovery website describes how they've used about half a million of it, leaving the other $129.5 million unaccounted for.
Alaska has received $103 million. Of that amount, almost $41 million can only be spent on Medicaid.
Colorado has received just over $727 million. $235 million can only be spent on Medicaid.
Washington has received over $1.4 billion (that isn't a typo). $531 million can only be spent on Medicaid.
Kentucky has received $660 million. $352 million can only be spend on Medicaid.
Pennsylvania has received $2.1 billion. More than $1 billion of that can only be spent on Medicaid.
Yet all of those states currently have class action suits pending against them because they've slashed their Medicaid budgets for home services for the elderly and people with disabilities to the point where thousands, if not millions are being threatened with institutionalization.
In this country, threatening someone with institutionalization for their age or disability or other special health care need is a violation of that person's civil rights. Back in 1999, the Supreme Court ruled that people with disabilities had a civil right to remain at home with their families, and in their communities, and that our government had a responsibility to its citizens to pay to ensure that no one was forced against their will into an institution. It's called the Olmstead Decision, and the Office for Civil Rights of the Department of Health and Human Services is responsible for enforcing it.
Yes, the economy is rotten and the states are all having to tighten their belts. But they've been given an unexpected gift of $26 billion just to help their state medicaid programs. The money is in state bank accounts, ready to be spent. The laws, the institutions, the delivery system are all in place.
So why are all these class action suits out there? What are these stimulus funds being spent on?
Each state has their own Recovery Act website. You can find your own state's website by clicking on your state name on this map. The map here will tell you exactly who has received ARRA-related contracts, grants and loans in your state.
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