While the new Affordable Health Care law provides a variety of funding
opportunities for states, one provision in the health law that could
shift billions of dollars from cash-strapped states to the federal
government. Under the National
Medicaid Drug Rebate Program created by the Omnibus Budget
Reconciliation Act of 1990, drug manufacturers are required to enter
into agreements that provide rebates for Medicaid purchased drugs,
establishing a 15% minimum level of rebates. Up until now, the rebates
were divided between the states and the federal government. But under
the new health reform law, a significant portion of the rebates will go
solely to Washington beginning this year.
In the State of the Union speech, President Barack Obama stated, "...jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill."
With the fiscal crisis forcing states to layoff hundreds of thousands
of teachers, nurses and police officers, the need for more federal job
creation and state fiscal relief support is clear. And there is
substantial momentum building around this issue in the states.
Calling it "a down payment on my commitment to cover every single American", President Obama signed into law an expansion of SCHIP, the State Children's Health Insurance Program. The law, twice vetoed by President Bush, will enable states to expand coverage to 4 million uninsured children by 2013 and maintain coverage for the roughly 7 million currently enrolled in the program. The law signed by President Obama includes several key advances: