Federal government gives states more than $4 billion to help with Medicare Part D 'clawback' costs

Share this article:

The Obama administration is granting $4.3 billion to states to help them offset the cost of Medicare drug coverage for those dually eligible for Medicare and Medicaid.

The relief helps states with the so-called clawback payment, which is the amount states pay to the federal government to offset some of the added expense to Medicare Part D of assuming drug costs for residents dually eligible for both programs. The government will offer the boost through an increase in the federal medical assistance percentage (FMAP). This temporary adjustment in the clawback payments will be applied for the period October 1, 2008 through December 31, 2010. 

“We believe today's action will help states as they struggle to maintain Medicaid and other budget priorities in these difficult economic times," Department of Health and Human Services Secretary Kathleen Sebelius said in a statement Thursday. 


Share this article:

More in News

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.