# Plain Language Summary: Protect Local Taxpayers Act of 2023

This bill is about how states and local governments share the costs of Medicaid, the health insurance program for low-income people. Right now, when the federal government increases its share of Medicaid funding to a state, the state gets to keep all that extra money. This bill would change that by requiring states to share those federal increases with local governments and counties that helped pay for Medicaid in the first place.

Here's how it works in practice: Imagine a county contributes 20 percent of the money a state spends on Medicaid. If the federal government suddenly gives the state an extra $100 million in Medicaid funding, the county would normally get nothing from that increase. Under this bill, the county would have to receive $20 million of that new federal money—the same 20 percent share they originally contributed. Essentially, the bill says that if local areas are helping to fund Medicaid, they should benefit proportionally when federal funding goes up.

The bill targets a specific situation: when the federal government temporarily increases its Medicaid funding to states (something that has happened during emergencies or economic downturns). The change would take effect starting January 1, 2024. For local taxpayers and county officials, this could mean their communities get more money back when federal Medicaid support increases. For states, it means they'd have less flexibility to keep all new federal Medicaid dollars and would need to distribute portions to their local partners who contributed to the program's costs.

Protect Local Taxpayers Act of 2023

Langworthy, Nicholas A.

Protect Local Taxpayers Act of 2023 This bill specifies that, in order to receive certain Federal Medical Assistance Percentage (FMAP) increases under Medicaid, states with a local share requirement must agree to distribute funds to each locality in an amount that is proportional to the locality's Medicaid contributions.