Feds forgive $45 million owed by Arizona

Feb. 18, 2010 06:02 PM
Associated Press .

The federal government is forgiving nearly $45 million in payments that Arizona owes the Department of Health and Human Services.

The Obama administration announced the move on Thursday.

The payments are supposed to offset the cost of prescription drug coverage for Arizona residents who are eligible for both Medicare and Medicaid.

Medicare is the federal government's health care system for people older than 64. Medicaid is known in the state as the Arizona Health Care Cost Containment System and provides health care for poor people.

The money comes from the federal stimulus act passed a year ago.

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