S.Amdt. 2645

Mr. Bennet submitted SA 2645 to change how costs are shared between the federal government and the states, starting in fiscal year 2030. It replaces lines 1 through 22 on pages 24 and 25 of the underlying text.

The Cost Share Rules

The amendment changes how much the federal government and the states pay based on a State's payment error rate:

• If the error rate is less than 6 percent, the federal share is 100 percent and the state share is 0 percent.

• If the error rate is equal to or greater than 6 percent but less than 8 percent, the federal share is 95 percent and the state share is 5 percent.

• If the error rate is equal to or greater than 8 percent but less than 10 percent, the federal share is 90 percent and the state share is 10 percent.

• If the error rate is equal to or greater than 10 percent, the federal share is 85 percent and the state share is 15 percent.

Election Rules for Error Rates

The amendment also adds rules for which year's error rate is used to figure out these costs:

• For fiscal year 2030, a state can choose to use its payment error rate from either fiscal year 2027 or fiscal year 2028.

• For fiscal year 2031 and every year after that, the Secretary must use the payment error rate from the third fiscal year before the year being calculated.