Press Release             

Contact: Paul Precht
Director of Policy and Communications

Akiko Takano
Deputy Director of Communications

February 19, 2010

Statement by Medicare Rights Center President Joe Baker on Reduced State “Clawback” Payments for Medicare Drug Coverage

New York, NY—We welcome yesterday’s announcement by the Obama Administration that states will see a $4.3 billion reduction in state “clawback” payments to the federal government for assuming responsibility for drug coverage for people with Medicare and Medicaid through the Part D drug benefit. States face a very tough fiscal situation and the savings that each state receives will help them maintain Medicaid services for low-income older adults and people with disabilities.

New York State alone will see over $400 million in reduced clawback payments. These savings should help the state maintain funding in the next budget to cover drugs through Medicaid and EPIC, New York’s pharmaceutical assistance program for older adults, when Part D drug plans deny coverage.

The HHS press release and state-by-state breakdown of savings is available here.

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Medicare Rights Center is a national, nonprofit consumer service organization that works to ensure access to affordable health care for older adults and people with disabilities through counseling and advocacy, educational programs, and public policy initiatives.


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