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DMA Adra {n{strative Letter No. 11-01 Page 2 The 90% Federal matching rate is for items associated with beneficiary oriented activities such as outreach, public service announcements and education. The hi~er 90°,4 enhanced rate encourages such activities and reco~izes the importance that individuals do not lose their Medicaid eligibility inappropriately, are correctly determined or redetermined eligible, and u~derstand program requirements. The lower 75% enhanced Federal matching rate addresses other allowable activities. The county can track its expenditures against the "de-linking allocation" amounts by subtracting the difference between the normal 50% FFP and the enhanced rate of 90% or 75%. For example, the 90% enhanced rote wduld be calculated as follows. Ifa county has $10,000 in expenditures it.could subtract 50% (normal FFP rote) for e:cpenditures which equals $$,000. Then subtract 40% which equals $4,000 (90% allocation- 50%--40%). The 40% amount is the amount to apply to the "de-linking allocation". The coUnty's share WOuld be $1,000. S10,000- -($~,000) -(s4;ooo) =S 1,000 ($0%) Regular FFP (40%) Additional F.FP fi.om 1931 allocation (I0%) coUnty share Example' of 75% enhanced rate calculaied:. If a county has $10,000 in expenditures it c6uld subtract 50% (nom~al-FFP rate) for expenditures which' equals $5,000.. Then subtract 25% which equals $2,500 (.75% allocation - 50% normal FFP = 25%). The 25% amount is the amount to apply to the "de-linking allocation". The county's share would be $2,500. $10,O00- -(S~,O00) -(s2,5oo) =s2,5oo (25%) Additional FFP from 1931 allocation (25%) county share Time coded for NC Health Choice for Children cannot 'be counted toward reimbursement from th/s money. This administrative letter obsoletes DMA Administrative Letter #9-00 and Addendum I.