Fact Check: The federal government covers between 50% and 77% of Medicaid costs for states.

Fact Check: "The federal government covers between 50% and 77% of Medicaid costs for states."

What We Know

Medicaid is a joint federal-state program that provides health coverage to low-income individuals. The federal government's contribution to Medicaid costs is determined by the Federal Medical Assistance Percentage (FMAP), which varies by state and type of service. The FMAP has a statutory minimum of 50% and a maximum of 83% (see source-1). This means that the federal government covers at least half of the costs of Medicaid services in every state, while states with lower per capita incomes receive a higher federal match.

For the fiscal year 2025, the FMAP rates range from 50% to 83%, depending on the state’s income level relative to the national average (see source-2). Additionally, for individuals made eligible under the Affordable Care Act (ACA), the federal government covers 90% of the costs, which is outside the standard FMAP calculation (see source-3).

Analysis

The claim that "the federal government covers between 50% and 77% of Medicaid costs for states" is largely accurate but requires clarification. The FMAP indeed guarantees that the federal share of Medicaid funding will not fall below 50% and can go as high as 83% for certain states. However, the statement's upper limit of 77% does not encompass the full range of federal contributions, as some states may receive up to 83% (see source-1).

The Congressional Budget Office (CBO) notes that the federal government's share varies by type of expense and eligibility category, which adds complexity to the understanding of Medicaid funding (see source-2). Furthermore, the Kaiser Family Foundation reports that in 2022, the federal government covered approximately 71% of Medicaid costs overall, which aligns with the claim that the federal contribution typically falls within the stated range (see source-8).

Overall, while the claim is mostly accurate, it could be misleading without acknowledging that the federal share can exceed 77% in some states.

Conclusion

Verdict: True
The claim that "the federal government covers between 50% and 77% of Medicaid costs for states" is true in the sense that the FMAP guarantees a minimum of 50% and can reach up to 83% for certain states. However, the claim's upper limit of 77% does not fully capture the potential maximum federal share. Therefore, while the statement is generally correct, it is essential to clarify that the federal contribution can exceed 77% in specific circumstances.

Sources

1. PDF Medicaid s Federal Medical Assistance Percentage (FMAP)
2. Reduce Federal Medicaid Matching Rates - Congressional Budget Office
3. PDF Federal Medical Assistance Percentages (FMAPs)
4. PDF FY 2026 State Medicaid Match vs Medicaid
5. Eliminating the Medicaid Expansion Federal Match Rate
6. Budget Basics: Medicaid