On October 27, Department of Health and Human Services Secretary Kathleen Sebelius responded to governors’ request for an administrative solution to the erroneous payments made by state Medicaid programs for benefits that should have been provided by Medicare – referred to as the Special Disability Workload or SDW. In her letter to governors, the Secretary stated that she explored the option to use Medicare and/or Medicaid demonstration authorities to resolve the issue but determined that she does not have the statutory authority to do so. Instead, the Secretary pledged to “work with affected states to explore possible legislative solutions.” The letter further states that the Secretary is committed to working with states to address the fiscal pressures facing Medicaid, particularly by pursuing opportunities for shared savings with respect to dual eligible beneficiaries.

Link: Copy of Secretary Sebelius's Letter