Health and Human Services Secretary Kathleen Sebelius has announced $4.3 billion in financial relief to states through reductions in payments that offset the cost of prescription drug coverage for Medicare and Medicaid eligible patients.
“We believe (the) action will help states as they struggle to maintain Medicaid and other budget priorities in these difficult economic times,” said Sebelius.
The temporary financial boost is from the American Recovery and Reinvestment Act of 2009 (ARRA). The law granted a significant increase in the amount states receive from the federal government to help pay for Medicaid programs (the federal medical assistance percentage payments or FMAP.)