S.Amdt. 385

SA 385. Mr. COBURN (for himself and Mr. Grassley) submitted an
amendment intended to be proposed to amendment SA 98 proposed by Mr.
Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; which was
ordered to lie on the table; as follows:

On page 723, between lines 22 and 23, insert the following:
(3) Participation in perm; penalty for excess error rate.--
As a condition of receiving additional Federal funds under
this section, a State shall agree to the following:
(A) PERM.--With respect to fiscal year 2010 and the first
quarter of fiscal year 2011, the State shall participate in
the Medicaid payment error rate measurement (PERM) process
for such fiscal year and quarter, regardless of whether the
State is scheduled to do so under the State participation
rotational cycle for such process in effect on the date of
enactment of this Act.
(B) Penalty.--If, with respect to all or any portion of a
fiscal year that occurs during the recession adjustment
period, the most recent PERM determined for the State under
Medicaid exceeds 5 percent, the State shall pay the Secretary
a penalty equal to the product of the total amount of
additional Federal funds paid to the State as a result of
this section for such fiscal year and the number of
percentage points by which the PERM determined for the State
for that fiscal year exceeds 5 percent.
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