Governor Rell Urges Congressional Delegation to Back Bill Repaying $37M Federal Debt Owed to Connecticut

Measure Would Rectify Longstanding Error in Social Security Medical Billing, Bringing Much-Needed Revenue During Budget Crunch

            Governor M. Jodi Rell today announced that she has written each member of the state’s Congressional delegation, urging them to co-sponsor and strongly support federal legislation that would fix a decades-old accounting error and help the state recover as much as $37 million in overdue reimbursement.

            “To put it simply, the Social Security Administration goofed,” Governor Rell said. “By not certifying Social Security Disability for people, state-funded Medicaid ended up paying for their healthcare instead of Medicare, which is fully paid by the federal government. The error resulted in the costs of caring for certain people with disabilities to be paid for by the wrong program and by state governments instead of the federal government. They know it and they acknowledge it – but the only way for states to get repaid is for Congress to pass legislation to make it happen. At a time when Connecticut and other states are struggling with enormous budget difficulties, it is absolutely critical that the federal government make good on this longstanding debt.

            “In essence, the Social Security Administration should have determined these applicants as disabled and let their health care be funded through the federal Medicare program,” the Governor said. “Instead, these individuals with disabilities continued to have their health care covered by Medicaid, where costs are split between the states and the federal government.”

            The Governor noted that U.S. Sen. Joe Lieberman (D-Conn.) is already a co-sponsor of the legislation.

            “Our members of Congress know full well the severity of the economic crisis facing Connecticut and the strains on our state budget,” Governor Rell said. “It is imperative that they give every possible support to the bill pending now to repay this debt or – if it should somehow fail – make sure similar language is inserted in another bill that is sure to pass, such as the upcoming jobs bill. We simply cannot afford to let a $37 million debt go uncollected.”

            The pending measure is House Resolution 2849, The Special Disability Workload Liability Resolution Act of 2009. A sample of one of the Governor’s letters to members of the delegation is attached.