Washington Less than one month ago, Congress set aside $10 billion to help struggling state governments pay for Medicaid programs whose costs were spiraling
by Brook Raflo

Washington

Less than one month ago, Congress set aside $10 billion to help
struggling state governments pay for Medicaid programs whose costs
were spiraling out of control. Last week, the Health and Human
Services Department announced a plan for distributing that
money.

The funds, which come in the form of a 2.95 percent increase in
the amount of Medicaid matching funds that states receive from the
federal government, were part of the Jobs and Growth Tax Relief
Reconciliation Act of 2003. They are slated to begin flowing this
quarter, and to continue until June 30, 2004.

Each state's allotted increase depends on the amount that the
state spends on Medicaid, and the funding is available only if a
state does not restrict its Medicaid-eligibility requirements after
Sept. 2, 2003, HHS explained.

A letter describing the way in which HHS will determine the
exact increase each state will receive is available at www.cms.hhs.gov/states/letters.

For breaking news, go to target="_blank">www.homecaremonday.com, the electronic news
service of the home medical equipment industry.