Ohio will receive $151 million in additional federal stimulus funds to offset state spending on prescription drugs for the Medicaid population. The funds will come from the U.S. Department of Health and Human Services through the federal stimulus bill and helps the states by increasing Federal Medical Assistance Percentage payments, which is the federal share of Medicaid costs. States will therefore have to pay less to the federal government for what are referred to as “clawback payments” that a state pays to offset the added expense to Medicare Part D of assuming drug costs for residents who are eligible for both Medicare and Medicaid. The ARRA boost was not accounted for among the FMAP stimulus aid already budgeted by Ohio for the current biennium, so the relief can serve as an offset to the a current budget gap. Ohio’s clawback payments of $581,726,147 will be therefore be reduced to $430,246,974, according to HHS.
Tags: ARRA, FMAP, medicaid, Medicare Part D, Ohio
