2006 Session

Budget Amendments - SB29 (Committee Approved)

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Reduce Medicare Part D "Clawback" Payment

Item 326 #6s

Item 326 #6s

First Year - FY2005 Second Year - FY2006
Health And Human Resources
Medical Assistance Services, Department of FY2005 $0 FY2006 ($6,717,958) GF

Page 88, line 15, strike "$4,680,452,927" and insert "$4,673,734,969".

(This amendment reduces $6.7 million from the general fund the second year to reflect a lower estimate of the Medicare Part D "clawback" payment. The introduced budget included a general fund savings of $2.7 million the second year for the clawback, a general fund payment to the federal government for the Medicare Part D prescription drug benefit. For the first six months of 2006, the Commonwealth will achieve general fund savings of $74.3 million, but incur costs of $65.3 million, resulting in overall savings for the biennium of $9.4 million. Based on downward revisions to the projected growth in pharmacy spending from calendar year 2003 to 2006, the federal government reduced the Commonwealth's annual payment amount.)