Feds stick state with the tab for Medicare

Thursday, Oct. 20, 2005 | 7:11 a.m.

CARSON CITY -- A deadlock in Congress has left Nevada stuck with a $134,000 bill for October for the premiums for some residents' Medicare Part D coverage.

And unless the state wants to cut off aid to 1,715 low-income senior citizens and disabled Nevadans, it may have to continue paying at least $134,000 each month.

Until now, the federal government had been covering the $78 monthly Medicare premiums for people who are 65 or older or who are disabled, and have monthly incomes of $1,097 to $1,464 a month. In Nevada, the state paid the premiums each month and was reimbursed by the federal government at the end of each quarter.

But the federal subsidy program ended Sept. 30, and Congress was unable to come to agreement on extending or renewing it before recessing on Oct. 7 for 10 days. The Bush administration notified Congress on Friday that it was terminating the subsidies. The administration had recommended a one-year extension.

Congress reconvened on Monday. Separate bills have been approved by the Senate and the House that include reinstating the $200 million annual subsidy program for about 192,000 people nationwide. But there are differences in the Senate and House bills over other components such as welfare and unemployment benefits.

Unless Congress resolves the differences by mid-November, Nevada will have to decide whether to pay another $134,000, Mike Willden, Nevada's Human Resources and Welfare director, said.

"If the state does not receive the money, there is a question whether we will continue to cover the cost," Willden said.

If the dispute lingers into the new year, the cost to the state will be even greater because the basic Medicare premium will rise from $78 to $88 in January.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.