H.R. 340House117th Congress (2021-2023)In Committee

Incentivizing Medicaid Expansion Act of 2021

AI-Generated Summary

Updated February 7, 2026 at 9:22 PM UTC

The bill changes the Medicaid matching formula so that any state that chooses to expand Medicaid receives the same level of federal matching assistance, no matter when the expansion occurs. It amends the Social Security Act’s Section 1905(y)(1) to replace year‑specific references with language that applies to the first three years and all subsequent years of a state’s expansion. This aims to give states a consistent financial incentive to expand coverage to newly eligible individuals.

Key Provisions

Amends Section 1905(y)(1) to replace specific years (2014‑2020) with language covering each of the first three consecutive 12‑month periods of Medicaid expansion, then the fourth, fifth, sixth, seventh, and each period thereafter.
Ensures the same federal matching assistance rate for states that expand Medicaid, regardless of the timing of the expansion.
Sets the amendment’s effective date as if it were part of the Affordable Care Act.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Health.

Health Subcommittee

January 18, 2021

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HouseIntro Referral

Introduced in House

January 15, 2021

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

January 15, 2021

HouseCommittee

Referred to the Subcommittee on Health.

Health Subcommittee

January 18, 2021

Bill Text

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Introduced in HouseIssued January 15, 2021

117th CONGRESS

1st Session

H. R. 340

IN THE HOUSE OF REPRESENTATIVES

January 15, 2021

Mr. Veasey (for himself, Mr. Allred, Ms. Barragán, Ms. Blunt Rochester, Mr. Butterfield, Mr. Carson, Ms. Castor of Florida, Mr. Castro of Texas, Ms. Clarke of New York, Mr. Cohen, Mr. Cooper, Ms. Davids of Kansas, Ms. Escobar, Mr. Green of Texas, Mr. Hastings, Mr. Kind, Ms. Kuster, Mr. Lawson of Florida, Ms. Lee of California, Ms. Moore of Wisconsin, Ms. Norton, Mr. Panetta, Mr. Pocan, Ms. Sewell, Mr. Vela, Ms. Wild, Ms. Wilson of Florida, and Mr. Levin of California) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend title XIX of the Social Security Act to provide the same level of Federal matching assistance for every State that chooses to expand Medicaid coverage to newly eligible individuals, regardless of when such expansion takes place.

Short title

This Act may be cited as the Incentivizing Medicaid Expansion Act of 2021.

Increased FMAP for medical assistance to newly eligible individuals

(a)

In general

Section 1905(y)(1) of the Social Security Act (42 U.S.C. 1396d(y)(1)) is amended—

(1)

in subparagraph (A), by striking 2014, 2015, and 2016 and inserting each of the first 3 consecutive 12-month periods in which the State provides medical assistance to newly eligible individuals;

(2)

in subparagraph (B), by striking 2017 and inserting the fourth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals;

(3)

in subparagraph (C), by striking 2018 and inserting the fifth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals;

(4)

in subparagraph (D), by striking 2019 and inserting the sixth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals; and

(5)

in subparagraph (E), by striking 2020 and each year thereafter and inserting the seventh consecutive 12-month period in which the State provides medical assistance to newly eligible individuals and each such period thereafter.

(b)

Effective date

The amendments made by subsection (a) shall take effect as if included in the enactment of the Patient Protection and Affordable Care Act.