States are required to pay back to the
federal government a phased down contribution, sometimes known as a "clawback"
of some of the money they are saving.

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"This is good news for every state.1 billion .

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With America ranking a dismal 13th in the world in
broadband competitiveness, it is time for strong Congressional leadership to
move beyond the outdated framework of the 1996 Telecom Act, to restore
America's innovation leadership and to put consumers in charge of our
telecommunications future .6 million self-enrolled in the new "stand-alone"
prescription drug plans and around 300,000 new enrollees in Medicare Advantage
plans with drug coverage.

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The Medicare Modernization Act requires the federal government to pay
prescription drug costs for people in Medicaid who had previously been
covered, in part, by the states. States only pay a portion of the costs in the
"clawback.

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hhs.

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During congressional debate in 2003,
governors and advocates for senior citizens supported moving the "dual
eligible" beneficiaries from Medicaid to Medicare.

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The competitive marketplace is working
to help federal and state governments, and most of all, Medicare
beneficiaries, drive down costs," Secretary Leavitt said.
As of last month, about 24 million Medicare beneficiaries now have drug
coverage, with about 3.

politics insights

WASHINGTON, Background: On February 8, 1996, the
Telecommunications Act set into law regulations for the communications
industry that now limit growth and innovation ."
Last week, CMS announced that the net cost to the federal government for
the drug coverage in 2006 is expected to be $30.

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"With strong competition in the Medicare drug benefit, we are seeing
aggressive negotiation, greater use of generic drugs and other effective steps
to slow down drug cost growth," said Centers for Medicare + Medicaid Services
(CMS) Administrator Mark B .

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Today marks the ninth anniversary of the Act, and we
have good reason to celebrate -- it may be the last, since Capitol Hill has
made updating the nation's telecom laws a priority. As marketplace choices
expand, the government's role should contract, allowing consumers to take the
driver's seat and determine for themselves which technologies and services
best meet their needs., Ph.
Overall, states can save money because of Medicare's drug coverage, not
only because the federal government now pays for drug coverage for people in
Medicaid and Medicare, but also because state governments can get subsidies
for their retired employees.

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McClellan, M.

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, President and
CEO of the United States Telecom Association:

"Nine years after the 1996 Telecom Act, we see broad recognition from
consumers and lawmakers that today's woefully outdated telecom rules are
unable to keep pace with the new technologies driving a highly competitive
communications industry."

USTA is the premier trade association representing service providers and
suppliers for the telecom industry.

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The following statement is from Walter B.gov/news.

politics congressional

McCormick, Jr .D.
For the 10-year period from 2006-2015, the "total" Medicare drug benefit cost,
without accounting for Medicaid savings, is now estimated to be about $130
billion less -- $797 billion compared to an estimated $926 billion last year.

Note: All HHS press releases, fact sheets and other press materials are
available at http://www.

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USTA Applauds Congressional Commitment to Update Industry Rules Nine Years After the Telecom Act

USTA represents more than 1,200 companies
offering a wide range of services, including local exchange, long distance,
wireless, Internet and cable television service.D.
State "clawback" payments are now projected to be 25 percent less over this
period .

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Today, nine years later, there
is broad acknowledgement among policymakers that the law is outdated and
Congress is taking steps to modernize the law this year. WASHINGTON, The states will send more than $700
million less to the federal government in 2006 because lower drug costs and
strong competition have reduced the price tag for Medicare's new drug
coverage, HHS Secretary Mike Leavitt announced today.5 billion down from a
previously estimated $38.

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The actual or "net" costs to the federal
government, accounting for Medicaid savings, are also significantly lower over
10 years , dropping from last year's estimated $737 billion to $678 billion.