Medicaid's federal matching rate for state funding is approximately what percent on average?

• A. 10%
• B. 75%
• C. 100%
• D. 53%

Answer: (D)

Medicaid is funded through a federal–state partnership using a matching rate called FMAP (Federal Medical Assistance Percentage). This rate isn’t fixed; it varies by state based on per-capita income and ranges from around 50% up to the low 80s. When you look at all states together, the average FMAP sits in the low-to-mid 50s. That’s why the approximate average is about 53%. So, for example, if a state spends $1 million on Medicaid, the federal government would contribute roughly $530,000 and the state would cover the remainder.

The other percentages don’t fit the typical overall average: 10% is far too low for Medicaid’s federal share, 75% is higher than the general average, and 100% would mean the federal government pays all costs, which isn’t how FMAP works.