In the federal and state Medicaid program, the federal government pays each state for the medical services those states deliver to Medicaid members based on two factors. The first factor is the actual amount each state spends for patient care that qualifies as matchable under Medicaid. The second factor is the Federal Medical Assistance Percentage (FMAP), which is determined based on a formula that includes the average per capita income for each state relative to that of the national average.
