2006 Special Session I

Budget Amendments - HB5002 (Committee Approved)

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Reduce Medicare Part D "Clawback" Payment

Item 302 #7h

Item 302 #7h

First Year - FY2007 Second Year - FY2008
Health And Human Resources
Medical Assistance Services, Department of FY2007 ($16,123,099) FY2008 ($16,123,099) GF

Page 258, line 32, strike "$4,989,007,434" and insert "$4,972,884,335".
Page 258, line 32, strike "$5,325,426,176" and insert "$5,309,303,077".

(This amendment reduces $16.1 million from the general fund each year to reflect a lower estimate of the Medicare Part D "clawback" payment. The introduced budget included $16.3 million the first year and $20.2 million the second year for the clawback, a general fund payment to the federal government for the Medicare Part D prescription drug benefit. 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. The overall general fund impact of the new prescription drug benefit under the federal Medicare Part D remains sizeable -- $48.2 million for the biennium -- but less than the previous estimate of $80.4 million.)