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Stimulus program cuts Mont. Share of Medicaid costs

A new stimulus program will allow Montana to keep $8.7 million that it normally would have had to reimburse the federal government for prescription drug coverage for people who are eligible for both Medicare and Medicaid. Health department director Anna Whiting Sorrell said the extra funding is "wonderful news" and will be considered as the Schweitzer administration decides where to cut state funding to balance the budget. Gov. Brian Schweitzer is expected to decide next month whether to enact just over $40 million in spending cuts, including a recommended $17 million in cuts in the Department of Public Health and Human Services. The stimulus money increases federal payments for Medicaid prescription costs from October 2008 through December 2010. Medicaid is the state-federal program that pays medical and other health care bills for the poor and disabled, while Medicare is a federal health insurance program that covers people age 65 and older.

 

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