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DCCUET RESUME
05321 - [B06855981
(HElIs Proposed Settlement of Outstanding Dispated State Claims
for Social Secvices]. HRD-78-78; RRD-78-80; B-164031(3). larch
6, 1978. 7 pp. 4 3 enclosures (4 pp.).
Report to Rep. Al Ullman, Chairman, Hou:e Committee on the
Judiciary; Ve. Peter V. Rolino, Jr., Chairman, House Committee
on bays and deans; Sen. Russell B. Long, Chairman, Senate
Committee on finance; by Gregory J. Ahart,/ Director# Human
Resources Di'r.
Issue Area: ?'edertily Sponsored or Assisted Income Security
Programs: kayment Processes, Procedures, and Systems (13G9).
Contact: Human Resources Div.
Budqet Puaction: Income Security: Public Assistance ane Other
Income Supplements (604).
Orqanization Conc-rued: Department of Health, Zducation, and
Welfare.
Congressional Relevance: House Commit-te on the judiciary; House
Committee on Ways ad mean-s; Senate Coamitee on Finance.
Rep. A. Ullman; Rep. Peter V. Rodino, Jr.; Sen. Russell B.
Long.
kuthority- S. 2360 (95th Cong.). Social Security Act.
Pr-posed legislatioa would settle State :laims for
reimbursement of social services costs whether or act the claims
are currently in dispute. As of June 1377, the Department of
health, Education, and elfare's (HEV's) records showe d that
there uere 141 claims totaling S3.988 billion for social
services costs that were deferred or disallowed by HEIR' and were
outstanding. Most of the disputed claims occurred rhen HEN
disallowed the&, either before or after they were paid, and the
States requested reconsideration o4 the disallcwancas. According
to HEM, because of limited staff, not all States' claisis are
reviewed in detail when tho.y axe submitted. The following were
noted in connection with HEZ's proposed settlement: the disputed
claims covered will be settled without regard to their validity;
the Office of management and Budget would probably make about
S543 million available to settle the unpaid claims; the formula
to be used for the settlement of unpaid claims is a modification
by tae States of an HEM proposal; the States would be paid or
would keep from 50% to 100% of their total paid and unpaid
claims; and both paid and unaid claias were disallowed by HEV
for the same reasons. Seven New York claims account for $1.404
billion of the S2.390 billion iurolved in the settlement.
According to HEV, the purpose of the proposed legislation is to
wipe the slate clean of all social services claims for
expenditures made by States bnfoze October 1, 1975. (rRS)](ViewImageLocal?handle=hein.gao/gaobaawvp0001&div=1&collection=&method=preview&ext=.png&size=3)