News and Finance

Arizona’s Medicaid program is getting nearly $45 million in financial relief from the federal government.

Health and Human Services Secretary Kathleen Sebelius announced Thursday that the Arizona Health Care Cost Containment System is getting a $45 million break on what it pays to the federal government to offset the cost of coverage for prescription drugs for residents eligible for both Medicare and Medicaid.

“This relief will help states continue to provide critical health care services to the nearly 60 million beneficiaries who depend upon it,” Sebelius said.

This temporary financial boost to Arizona and other states is made possible by the American Recovery and Reinvestment Act of 2009.

Without this financial relief from the federal government, Arizona would have owed $154 million in what are called “clawback payments,” the amount states pay to the federal government as required by the Medicare Prescription Drug Improvement and Modernization Act of 2003. It is intended to offset added expense to Medicare Part D for assuming drug costs for residents eligible for both programs.

Now, AHCCCS will pay $109 million for the period beginning Oct. 31, 2008, and ending Dec. 31, 2010.

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