Intergovernmental Transfer

An Intergovernmental Transfer is a transfer of funds from one governmental entity (e.g., a county, state agency, or public hospital) to a state’s Medicaid agency. These funds serve as the non-federal share of Medicaid expenditures, making them eligible for federal matching dollars (Federal Financial Participation, or FFP). This mechanism helps finance Medicaid programs, particularly for services provided by governmental providers like community health centers or public hospitals.

Additional Resources

• Federal Medical Assistance Percentage
• Provider Taxes
• Supplemental Payments

Additional Paragon Research

• Addressing Medicaid Money Laundering
• The Local Loop: How States Turn Medicaid into a Government Provider Payday Scheme
• How States Use IGTs to Shift Medicaid Costs to Federal Taxpayers (Paragon PIC)