Under the measure, higher federal Medicaid funding—created by a 2009 bill meant to boost the economy—would be phased down over several quarters in 2011.
As is, the federal government is paying a 6.2% bonus Medicaid payment to states. The legislative amendment would trim that figure to 3.2% in the first quarter of 2011, then 1.2% in the second quarter, or through June.
But it does so at a cost. Keeping the higher federal portion of Medicaid intact, albeit for only six months, costs $16.1 billion over a 10-year budget window.
Additionally, the bill includes a measure that makes certain inhalation, infusion and injectable drugs not dispensed through retail community pharmacies subject to the average manufacturer price scale. The measure expects to save Medicaid $2.1 billion over the next decade.