2006 Special Session I

Budget Amendments - HB5002 (Conference Report)

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Reduce Medicare Part D "Clawback" Payment

Item 302 #10c

Item 302 #10c

First Year - FY2007 Second Year - FY2008
Health And Human Resources
Department Of Medical Assistance Services FY2007 ($19,905,445) FY2008 ($21,314,412) GF

Page 258, line 32, strike "$4,989,007,434" and insert "$4,969,101,989".
Page 258, line 32, strike "$5,325,426,176" and insert "$5,304,111,764".

(This amendment reduces $19.9 million in the first year and $21.3 million in the second year from the general fund to reflect a lower estimate of the Medicare Part D "clawback" payment. The introduced budget included $37.9 million the first year and $42.3 million the second year for the state's share ("clawback") of the cost to implement the new Medicare Part D prescription drug program. Based on downward revisions to the projected growth in pharmacy spending from calendar year 2003 to 2006 and other revisions, 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 -- $39.2 million for the biennium -- but less than the previous estimate of $80.4 million.)