newjerseynewsroom.com

The U.S. Department of Health and Human Services has notified the state government that it will decrease the amount the state will have to reimburse Medicare for some prescription drug payments by $152.9 millioni, a 22 percent break on what New Jersey expected to have to pay back.

Without the reduced payment, the state would have owed $696,147,055.

State Senate President Stephen M. Sweeney (D-Gloucester) and upper house Budget and Appropriations Chairman Sen. Paul Sarlo (D-Bergen) Friday said the reimbursement break shows how New Jersey is being helped by the policies set by the Obama administration.

"Once again, President Obama and his administration are showing not only that they understand the tremendous fiscal strains states like New Jersey are under, but that they are willing to step up to the plate to help us through these challenging times," Sweeney said.

Late Thursday HHS Secretary Kathleen Sebelius said the department would apply an enhanced federal match to adjust the so-called "clawback payments" — the amount states reimburse the federal government for costs of Medicare prescription drug coverage for residents eligible for both Medicare and Medicaid — retroactive to October 1, 2008 and carried forward to the end of this year.

Sarlo said, "This is real money that now can be used to help balance the budget and hopefully protect some valuable state health programs from the chopping block."

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM