Sec. 604. Federal payments to States
252 words·~1 min read·
/bill/113/hr/1200/ih/section-604·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Each State with an approved State health security program is entitled to receive, from amounts in the American Health Security Trust Fund, on a monthly basis each year, of an amount equal to one-twelfth of the product of— the State capitation amount (computed under section 602(a)(2)) for the State for the year; and the Federal contribution percentage (established under subsection (b)). The Board shall establish a formula for the establishment of a Federal contribution percentage for each State.
Such formula shall take into consideration a State’s per capita income and revenue capacity and such other relevant economic indicators as the Board determines to be appropriate. In addition, during the 5-year period beginning with 2014, the Board may provide for a transition adjustment to the formula in order to take into account current expenditures by the State (and local governments thereof) for health services covered under the State health security program. The weighted-average Federal contribution percentage for all States shall equal 86 percent and in no event shall such percentage be less than 81 percent nor more than 91 percent.
All payments made under this section may only be used to carry out the State health security program. If a State exceeds its budget in a given year, the State shall continue to fund covered health services from its own revenues. If a State provides all covered health services for less than the budgeted amount for a year, it may retain its Federal payment for that year for uses consistent with this Act.