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March 2010 St@teside

Secretary Sebelius Announces $4.3 Billion to States to Reduce Clawback Payments

On February 18, Secretary Kathleen Sebelius announced an additional $4.3 billion in fiscal relief to states. The Centers for Medicare & Medicaid Services (CMS) determined that the higher Federal Medical Assistance Percentages (FMAP) that were passed in the American Recovery and Reinvestment Act (ARRA) should be applied to the so-called clawback payments, or the state’s share of the cost for prescription drugs under Part D of Medicare.

Secretary Sebelius announced that this determination will apply for all state clawback payments since October 1, 2008, and will be effective as long as the increased FMAP rates apply. Under current law the increased rate is scheduled to expire on December, 2010; however, the president’s budget calls for an extension until June 30, 2011. The amount of funds to be received by each state can be found here.