To give States incentives to reduce fraud, waste, and abuse in their Medicaid programs.

SA 3712. Mr. CORNYN proposed an amendment to the bill H.R. 4872, to
provide for reconciliation pursuant to Title II of the concurrent
resolution on the budget for fiscal year 2010 (S. Con. Res. 13); as
follows:

At the end of subtitle C of title I, add the following:

SEC. 1207. FMAP REDUCTION FOR HIGH PAYMENT ERROR RATE.

Section 1905 of the Social Security Act, as amended by
section 1202(b) of this Act, is amended by adding at the end
the following:
``(ee) Decreased FMAP for High Payment Error Rate
Measurement.--Notwithstanding any other provision of this
title, beginning January 1, 2014, in the case of a State for
which the payment error rate measurement (commonly referred
to as `PERM') is at least 10 percent, the Federal medical
assistance percentage otherwise applicable to the State with
respect to payments for medical assistance for individuals
enrolled in the State plan under subclause (VIII) or (IX) of
section 1902(a)(10)(A)(i) or subclause (XX) or (XXI) of
section 1902(a)(10)(A)(ii) shall be reduced by 1 percentage
point until the date on which the Secretary determines that
the PERM for the State is below 10 percent.''.
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