Thursday, August 5, 2010
Passage of Medicaid FMAP Extension Will Preserve Quality Care, Key Frontline Jobs
"We applaud the Senate for taking action to pass this vital Medicaid relief, and urge the House to follow in the same manner. Every day that passes without an extension of this funding, seniors' care is placed in jeopardy, facility staffing stability is compromised, and good, local health jobs are put at risk," said Bruce Yarwood, President and CEO of AHCA. "The time to act is now. Our governors have repeatedly expressed the desperate need for relief, and we ask Congress to act on this critical health care policy matter."
"Senate passage of this legislation brings us one step closer to providing the vital funding needed to protect every senior's access to the skilled nursing and rehabilitative care they require and deserve," said Alan G. Rosenbloom, President of the Alliance. "We thank those Senators who took this stand for seniors and urge the House to follow with swift passage as well."
Yarwood and Rosenbloom pointed out that adequate Medicaid funding is directly linked with skilled nursing care and local caregiver job stability throughout America. Without the extension of emergency Medicaid relief, pressure mounts on governors to further reduce Medicaid-financed care and services.
A strong bipartisan majority of governors are adamant about the need for immediate action, as the National Governors' Association (NGA) recently noted, "Funding for FMAP is a particularly effective tool because it immediately allows Governors to eliminate planned budget cuts required to meet balanced budget requirements and continue services for those with the greatest need."
"We urge state legislatures and governors to use this increased funding to ensure our nation's seniors receive the funding necessary to provide high quality care as well as job stability for frontline caregivers," concluded Yarwood and Rosenbloom.
This measure will now return to the House of Representatives, where it could be considered as early as September when Members return from the August work period.
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Thursday, February 18, 2010
Obama Administration Grants Relief to States on Payments to Medicarefor Part D Costs
“We believe today’s action will help states as they struggle to maintain Medicaid and other budget priorities in these difficult economic times,” said Secretary Sebelius. “This relief will help states continue to provide critical health care services to the nearly 60 million beneficiaries who depend upon it.”
This temporary financial boost to states is made possible by the American Recovery and Reinvestment Act of 2009 (ARRA). That law granted a significant, yet temporary, increase in the amount states receive from the federal government to help pay for their Medicaid programs. The increase was to the federal share of Medicaid costs, referred to as federal medical assistance percentage payments (FMAP).
In a call with state governors today, Secretary Sebelius reported that HHS will apply the ARRA increased FMAP to so-called clawback payments. The clawback payment is the amount states pay to the federal government as required by the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA). It is intended to offset some of the added expense to Medicare Part D of assuming drug costs for residents dually eligible for both programs. Prior to MMA, state Medicaid programs covered prescription drug costs for these beneficiaries. Because Medicaid is a state/federal matching program, the higher FMAP under ARRA results in a temporary reduction of the states’ share of spending and therefore in their clawback obligation.
This temporary adjustment in the clawback payments will be applied for the period October 1, 2008 through December 31, 2010. In his 2011 budget, President Obama calls for the FMAP increase established in ARRA to be extended through June 30, 2011.
“In asking Congress to extend the increased FMAP in his 2011 budget proposal, the President recognizes both the critical role Medicaid plays in the health of our most vulnerable citizens and difficulties states are experiencing given the economic downturn,” Secretary Sebelius said.
States make clawback payments monthly and CMS is currently reprogramming its billing system to calculate the new, reduced payments owed by states. The savings, which are retroactive to October 2008, will be deducted from what they otherwise would have owed going forward.
The table below shows each state’s estimated savings. Column B shows the state’s obligation under the pre-ARRA formula with column C showing the newly calculated payment, column D the total estimated savings to the state.
| State (A) | Total Q1 FY 09 Thru Q1 FY 11 Clawback Based on Reg. FMAP (B) | Total Q1 FY 09 Thru Q1 FY 11 Clawback Based on ARRA FMAP (C) | Total State Savings/Fed. Cost Q1 FY 09 Thru Q1 FY 11 (D) |
| Alabama | $150,247,579 | $106,425,199 | $43,822,379 |
| Alaska | $48,317,314 | $38,286,755 | $10,030,558 |
| Arizona | $153,759,854 | $108,954,983 | $44,804,871 |
| Arkansas | $87,089,886 | $62,440,556 | $24,649,330 |
| California | $2,913,864,100 | $2,238,430,401 | $675,433,698 |
| Colorado | $192,319,003 | $150,066,687 | $42,252,316 |
| Connecticut | $296,665,054 | $230,615,556 | $66,049,498 |
| Delaware | $34,099,374 | $26,386,737 | $7,712,637 |
| District of Columbia | $25,602,876 | $17,959,629 | $7,643,248 |
| Florida | $1,015,370,655 | $732,819,868 | $282,550,787 |
| Georgia | $256,830,737 | $186,189,524 | $70,641,213 |
| Hawaii | $60,409,856 | $43,814,638 | $16,595,218 |
| Idaho | $46,562,615 | $32,122,245 | $14,440,370 |
| Illinois | $875,508,052 | $675,854,129 | $199,653,923 |
| Indiana | $209,694,287 | $151,629,223 | $58,065,064 |
| Iowa | $162,359,071 | $127,106,244 | $35,252,826 |
| Kansas | $113,478,227 | $89,157,121 | $24,321,107 |
| Kentucky | $182,471,045 | $127,408,848 | $55,062,197 |
| Louisiana | $203,392,153 | $126,178,376 | $77,213,777 |
| Maine | $103,581,677 | $75,744,571 | $27,837,106 |
| Maryland | $238,997,062 | $187,197,783 | $51,799,278 |
| Massachusetts | $612,833,627 | $480,102,616 | $132,731,011 |
| Michigan | $386,791,612 | $285,445,457 | $101,346,155 |
| Minnesota | $360,083,533 | $278,777,119 | $81,306,414 |
| Mississippi | $102,735,712 | $65,989,013 | $36,746,699 |
| Missouri | $407,283,149 | $299,443,677 | $107,839,472 |
| Montana | $28,771,325 | $20,110,737 | $8,660,588 |
| Nebraska | $95,393,763 | $76,664,267 | $18,729,497 |
| Nevada | $62,310,316 | $45,031,768 | $17,278,548 |
| New Hampshire | $71,136,363 | $56,982,733 | $14,153,631 |
| New Jersey | $696,147,055 | $543,196,366 | $152,950,689 |
| New Mexico | $47,436,153 | $33,768,936 | $13,667,217 |
| New York | $1,882,163,731 | $1,474,399,935 | $407,763,796 |
| North Carolina | $552,941,188 | $400,670,852 | $152,270,335 |
| North Dakota | $22,440,556 | $18,259,530 | $4,181,026 |
| Ohio | $581,726,147 | $430,246,974 | $151,479,172 |
| Oklahoma | $154,134,582 | $106,156,483 | $47,978,098 |
| Oregon | $147,332,690 | $108,155,974 | $39,176,716 |
| Pennsylvania | $1,000,611,930 | $771,650,285 | $228,961,645 |
| Rhode Island | $97,366,309 | $74,159,944 | $23,206,365 |
| South Carolina | $168,667,834 | $117,154,008 | $51,513,826 |
| South Dakota | $31,593,895 | $25,104,607 | $6,489,288 |
| Tennessee | $442,828,611 | $321,494,820 | $121,333,791 |
| Texas | $777,317,414 | $567,316,054 | $210,001,360 |
| Utah | $57,174,136 | $39,826,114 | $17,348,022 |
| Vermont | $49,485,228 | $36,881,632 | $12,603,596 |
| Virginia | $390,311,646 | $304,575,535 | $85,736,111 |
| Washington | $359,451,673 | $273,090,100 | $86,361,573 |
| West Virginia | $71,905,352 | $48,544,797 | $23,360,555 |
| Wisconsin | $476,178,882 | $358,970,479 | $117,208,403 |
| Wyoming | $23,393,068 | $18,935,147 | $4,457,921 |
| TOTAL | $17,528,567,954 | $13,215,895,031 | $4,312,672,922 |