tci Medicare Compliance & Reimbursement - 2006 Issue 12

Part D: 15 States Take Part D 'Clawbacks' To The Supreme Court

Payments for dual eligibles' drug coverage are an 'unconstitutional tax,' states allege. States are sharpening their claws in retaliation against so-called "clawback" provisions associated with the Medicare drug benefit.Attorneys General from five states--Texas, Kentucky, Maine, Missouri and New Jersey--requested permission March 3 to file a U.S. Supreme Court lawsuit against the Department of Health and Human Services. The clawback payments, which states pay the federal government to fund Part D drug coverage for dual eligibles in place of Medicaid, are "an unconstitutional tax against the States in their sovereign capacities," the suit alleges.The official...

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