Under the Families First Coronavirus Response Act, the federal government has temporarily mandated paid sick leave and provided $1 billion for unemployment insurance grants to states. Additionally, the act increases federal funding for Medicaid.

First, the federal government will pay 100 percent of the cost of COVID-19 testing for the uninsured and there will be no cost sharing for COVID-19 testing under Medicare, Medicaid, and CHIP.

Second, the act temporarily increases the federal match for Medicaid spending during the declared emergency by 6.2 percentage points. The Federal Medical Assistance Percentage (FMAP) is the amount that the federal government pays for the program; the rest is covered by the state. The FMAP is determined based on a state’s per capita income and it ranges from 50.0 percent to 77.76 percent. Washington’s regular FMAP is 50.0 percent.

By increasing the federal share, state funds will be freed up for other purposes. I haven’t seen an official estimate of the effect this will have on Washington’s budget, but the Center on Budget and Policy Priorities has a rough estimate based on 2017 Medicaid data that assumes the enhanced FMAP will be in place all year. It estimates Washington would get about $600 million more from the federal government.

Meanwhile, the Centers for Medicare & Medicaid Services (CMS) has approved an 1135 Medicaid waiver for Washington. This waiver will allow the state more flexibility under the Medicaid program during the emergency. CMS Administrator Seema Verma said, “We are committed to stripping away any red tape that gets in the way of states or providers effectively managing this public health emergency.”