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

Bulk of Medicaid to be managed care in two years: Avalere

Bulk of Medicaid to be managed care in ...

More than three-quarters of Medicaid beneficiaries will be enrolled in a managed care plan as of 2016, according to an Avalere Health analysis released Thursday. The numbers reveal that managed ...

Nursing home asked for employee's personal information too often, jury rules

The human resources department of a Maine nursing home did not properly protect a former employee's personal identification information, a jury recently ruled.

Test could confirm sepsis within an hour

Nursing home residents might benefit from a new way of diagnosing and treating sepsis made possible by discoveries out of the University of British Columbia.