Pelosi releases statement on HHS Secretary's decision to increase aid to states for Medicare Part D payment

Speaker Nancy Pelosi released the following statement in response to Health and Human Services Secretary Kathleen Sebelius' decision to increase aid to states by $4.3 billion in reimbursements for Medicare Part D prescription drug coverage for dual eligibles due to the federal medical assistance percentage payments (FMAP) increase under the American Recovery and Reinvestment Act:

"I applaud the Administration's decision, which will mean much-needed relief to states facing severe budget constraints in light of the tough economic climate. The California Congressional delegation's diligence in raising this issue with HHS has paid dividends for California, which will be rewarded with an additional $680 million, all due to the FMAP increase included in the Recovery Act that we passed a year ago.

"As I noted to Governor Schwarzenegger when we met in Washington recently, the Recovery Act will deliver more than $83 billion to California and has already generated more than 250,000 jobs in our state and continues to fulfill its mission of generating jobs and economic growth. The House has also passed the Jobs for Main Street Act, providing billions more in relief for states, including a six-month extension of the enhanced FMAP, which would continue this additional aid to states."

Background:

The American Recovery and Reinvestment Act included a temporary increase for states in federal medical assistance percentage payments (FMAP). This decision applies the enhanced FMAP rates on "clawback" payments made by states to the federal government to offset the costs of added expense to Medicare Part D for assuming the cost of prescription drugs for individuals who are eligible for both Medicare and Medicaid.