States to sue over Federal "Claw back"

techs

Lifer
Sep 26, 2000
28,559
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http://www.reformer.com/Stories/0,1413,102~29953~3216694,00.html
Vermont may join a multistate suit against the Bush administration over a federal mandate that states help pay for the new Medicare Part D prescription drug program for seniors.

With the Medicare bill Congress included a "claw-back" provision that requires states that subsidized seniors' drugs before the new Medicare program went into effect to send the same amount of money to Washington to support the new program.

The claw-back nationwide requires that states pay about $48 billion over the next five years, said Sorrell.

Several states question Washington's right to the money and want the U.S. Supreme Court to stop the payments, he said.

"They believe this whole claw-back system is unconstitutional," Sorrell said. "I would be surprised if there was not a filing at the Supreme Court in the next two to four weeks."

The debate over the claw-back is separate from enrollment problems that low-income seniors experienced when Part D went online earlier this month, prompting 26 states to revert to their old Medicaid system to pay for drugs the federal program was supposed to cover.


Talk about your abuse of Federal power.