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Washington, D.C. --- At a hearing today before the House Energy and Commerce Committee, U.S. Secretary of Health and Human Services (HHS) Mike Leavitt committed to reimburse New Jersey for the costs it has incurred helping low-income seniors pay for their prescription drugs. The commitment was made in response to a question from U.S. Rep. Frank Pallone, Jr. (D-NJ), a senior member of the House Energy and Commerce Committee, at a hearing on Capitol Hill today.
The New Jersey congressman asked Leavitt the following question: "Can you tell me to what extent the administration will reimburse New Jersey and other states for these costs and why the Administration has resisted reimbursing States for covering Pharmaceutical Assistance to the Aged & Disabled (PAAD) claims in the first place? It seems logical to me, to the extent that Medicare was responsible for covering a portion of these claims, the State should be reimbursed for it. Wouldn't you agree with that?"
In response, Secretary Leavitt indicated that New Jersey should be reimbursed for the costs it has incurred in paying claims that Medicare Part D plans should have covered. While the administration has outlined how it will reimburse states for covering seniors eligible for Medicare and Medicaid, Secretary Leavitt did not indicate today when or how the reimbursement would take place for the costs incurred for covering PAAD beneficiaries.
"Though the Secretary was quite vague at today's hearing, I am going to hold him to his word that New Jersey will indeed be fully reimbursed," Pallone said after the hearing.
At the hearing, Pallone said that New Jersey continues to experience significant problems with implementation of the new drug benefit. It continues to pay the drug bills of many low-income people who have fallen through the cracks in the new program. To date, New Jersey has paid $113 million in claims for people who are dually eligible for Medicare and Medicaid and those enrolled in the PAAD program, or approximately $2.6 million per day.
"Despite the Centers for Medicare and Medicaid's efforts to reimburse states, it remains unclear whether New Jersey will be fully repaid under the waiver program as it is currently designed," Pallone said at today's hearing.
The New Jersey congressman also handed Secretary Leavitt a letter from the entire New Jersey congressional delegation asking that New Jersey be reimbursed for its payments not only to those dually eligible, but also those PAAD participants who are not eligible for Medicaid. |
