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GAO-09-259R 1 (2008-12-16)

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T I   IAccountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548

          B-317565


          December 16, 2008

          The Honorable Max Baucus
          Chairman
          The Honorable Charles E. Grassley
          Ranking Minority Member
          Committee on Finance
          United States Senate

          The Honorable Charles B. Rangel
          Chairman
          The Honorable Jim McCrery
          Ranking Minority Member
          Committee on Ways and Means
          House of Representatives

          Subject: Department of Health and Human Services, Centers for Medicare and
                  Medicaid Services: Medicaid Program, State Flexibility for Medicaid Benefit
                  Packages

          Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Health and Human Services, Centers
          for Medicare and Medicaid Services (CMS), entitled Medicaid Program; State
          Flexibility for Medicaid Benefit Packages (RIN: 0938-AO48). We received the rule
          on December 3, 2008. It was published in the Federal Register as a final rule on
          December 3, 2008. 73 Fed. Reg. 73,694.

          The final rule implements provisions of section 6044 of the Deficit Reduction Act of
          2005 (Pub. L No. 109 - 171, 120 Stat. 4, 88 (Feb. 8, 2006)), which amends the Social
          Security Act by adding a new section 1937 related to the coverage of medical
          assistance under approved state plans. It also provides states increased flexibility
          under an approved state plan to define the scope of covered medical assistance by
          offering coverage of benchmark or benchmark-equivalent benefit packages to
          certain Medicaid recipients. The final rule has an effective date of February 2, 2009.

          Enclosed is our assessment of the CMS's compliance with the procedural steps
          required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.
          Our review indicates that CMS complied with the applicable requirements.


GAO-09-259R

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