Intergovernmental transfers (IGTs) are a transfer of funds from another government entity (e.g., county, city or another state agency) to the state Medicaid agency. The ability of a state to use IGTs to fund their Medicaid program is recognized in statute (§1903(w)(6) of the Social Security Act) and rule (42 CFR §433.51). Medicaid has been a joint financing partnership between the states and the federal government since 1965. This provides a guarantee of federal matching funds for state expenditures for health and long-term care services for the country’s low-income population.
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