CPB Certified Professional Biller Certification Practice Exam

What is the goal of the Federal Medical Assistance Percentage (FMAP)?

1. To determine funding for federal employee salaries

2. To set federal reimbursement rates for Medicaid

3. To establish insurance premium amounts

4. To manage retirement benefits funds

The correct answer is: To set federal reimbursement rates for Medicaid

The Federal Medical Assistance Percentage (FMAP) is designed to set the federal reimbursement rates for Medicaid. It is a crucial component of the Medicaid funding structure, as it determines the share of Medicaid expenditures that the federal government will reimburse to states. This percentage is recalibrated annually based on state income levels, ensuring that lower-income states receive a higher federal match to help them maintain their Medicaid programs. By providing a consistent and predictable funding mechanism, FMAP plays a vital role in ensuring that Medicaid can provide health coverage to eligible individuals across the country. The correct answer underscores the FMAP's direct impact on the sustainability and expansion of Medicaid services.