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105326 1 (1978-03-08)

handle is hein.gao/gaobadxyh0001 and id is 1 raw text is: h)ocO5mi RISOIX 05326 - [B06855961 HEW's Proposed Legislation To Settle Certain Disputed State Claims for Reimbursement of Social Services Costs, darch 6, 1978. 7 pp. + 2 enclosures (2 pp.'. Testimony before the l'use Committee cr the Judiciary: Administrative Law and Governmental Relations Subcommttee; by Greqory J. Ahart, Director* Human Bescurces Di,. Contact: Human Resources Div. Organization Concerned: Department of Health, Education, and Welfare. Congressional velevance: House Cos.-ittee on the Jludiciary: Administrative Law and Governmental Relaticas Sutcosmittee. authority: H.R. 10101 (95th Cong.). Social Security Avt. Before Gbtober 1, 1975, social services costfi were incurred under titles I, IV, VI. le XIVr and IVX of the Social Security Act, acd since then, these costs have been incurred under title XX of the act which established a new social services program. The effect of proposed legislatic© is to settle all claims for social services costs incurred by States before October 1, 1975, whether or not the claims are in dispute. These claims are comprised of 81 disputed claims by 28 States totaling about $3.4 billion and all undisputed claims paid to States before October 1. 1975. Although the legislation would settle cliims for costs incurred before October 1. 1975. there would remaiu outstanding 60 disputed claims by 24 States totaling about $391 million for costq incurred after that date. The Dpartment of Health, Education, and Welfare (BEV) neqotiated settlements with 28 States which had disputed claims. The following vas noted about the proposed settlemexts: the disputed claims covered will be settled witiout regard to their validity; about $543 million could probably be obtained to settle the unpaid disputed claims; it &ill result in States receiving from 23% to 58% of their unpaid disputed claims; the states would be paid or would keep from 50% to 100% of their total paid and unpaid disputed claims; the total benefit to each State dep3nds largely on whether its disputed claims are paid or unpaid; and if HEV applied its formula to both paid and unpaid claims, she 28 States would repay S85.7 million instead of BEV paying the States $532 million. (Author/BTU)

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