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B-164031(3).150 1 (1979-09-05)

handle is hein.gao/gaobabjgt0001 and id is 1 raw text is: DIGiST' INC CIHCILATION-9 r I COMPtTR01ZR GENERAL OF THE UNiED STATES 62 wrASHItIGTON. M.C 2106 B-164031(3).150 September 5, 1979 The Honorable Robert N. Giaimo Chairman, Committee on the Budget House of Representatives Dear Mr. Chairman: This is in response to your request for a legal interpretation of the Department of Health, Education, and Welfare's (HEW) recent decision to restore approximately $137 million of unobligated Fiscal Year (FY) 1978 Medicaid appropriations in order to pay States the Federal share of Medicaid expenditures incurred in FY 1978 but not claimed by the States until FY 1979. We believe, as explained below, that this action by HEW is legally authorized. The description of HEW 's restoration of funds contained in your request has been confirmed in its essential details by HEW (except that $157 million rather than $137 million will be restored to the FY 1978 Medicaid appropriation). HEW's report to us on this question states: Pursuant to section 1903 of the Social Security Act, 42 U.S.C. 1396b, the Secretary of HEW makes quarterly grant awards to each state that has an approved state plan for Medicaid. The grant awards are made prior to the beginning of each quarter after the receipt from each state of estimates of the amount of federal financial par - ticipation to which the state believes it will be entitled in the forthcoming quarter. These estimates are reviewed and adjusted by the Secretary and the quarterly grant award is then made to the states. The total grant awards to the states for Medicaid for FY 1978 turned out to have been lower than the actual- expenditures i cured by the states in that fiscal year. Based npon quarterly expenditure reports submitted by the states in FY 1979, which covered expenditures that were actually incurred in FY 1978, we determined that the total of the four quarterly grant awards for FY 1978 was approximately $183. 5 million (as of April 1979) less than the Federal matching funds to which the states were entitled. Had our estimates been more accurate, we would obviously have ma largdr grant. awards .. . . . . . .... . . . . . . . . . . .. . . .. . .... . . . -. : . . . ,i-.. -'-- -- .- .,.- % ' ' ' . : • .- . . . .

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