From the Metrowest Daily News:
The potential loss of more than $600 million in federal aid once deemed a sure thing has had Massachusetts Democrats scrambling to rebuild the state budget behind closed doors, warning publicly of layoffs and steep program cuts if the funds fall through. ...
According to Patrick administration officials, the federal government owes Massachusetts $160 million in Social Security payments that Massachusetts had erroneously made for the last 35 years. The federal government has acknowledged the error, prompting state officials to include the $160 million in spending plans for the fiscal year that begins July 1. ...
At issue is the way the Social Security Administration handles disability claims.[State] Health and Human Services Secretary JudyAnn Bigby told the News Service at the time that the federal agency often declines applications for disability payouts on an applicant's first attempt. However, if an applicant appeals the rejection, the state then covers health care costs for that person until the matter is resolved. If the applicant is ultimately approved, the SSA is supposed to reimburse the state for that interim coverage.
Bigby said 30 other states are expected to be in line for Social Security reimbursements.
I posted an item from the Boston Herald about this last November. I still do not understand what their theory is or why they were so confident that Social Security was going to write them a huge check. It seems to me that it would be Health and Human Services rather than Social Security writing the check since it appears to be Medicaid money they want reimbursed. I doubt that the matter is simple. If it was I am sure this would have been caught decades ago.
I think it's not SSA that owes the money. The State is paying for Medicaid benefits for the disallowed claimants. If the claim is subsequently allowed, the State has the right to claim reimbursement for its share of the Medicaid paid out for any period subsequently covered by Medicare/Medicaid. SSA maintains the entitlement records, but the Treasury pays any reimbursement from general revenues.
ReplyDeleteConfused yet? Bottom line, they shouldn't hold their breath while waiting for the money, if they get any. Because, the State has liabilities of other kinds regarding Medicaid, and an underpayment here or there may not get them so much as a farthing. Nancy Ortiz
And just as with the DDS furloughs, the politicians are just plain stupid.
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