Cost Sharing

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1391-DR
ApplicantNew York State Department of Health
Appeal TypeSecond
PA ID#000-U8JG3-00
PW ID#206, 574 & 579
Date Signed2003-05-08T04:00:00

N/A

Appeal Letter

May 8, 2003

Mr. John A. Agostino
Alternate Governor’s Authorized Representative
1220 Washington Avenue
Building 22, Suite 101
Albany, New York 12226-2251

RE: Second Appeal: New York State Department of Health, PA ID # 000-U8JG3-00, Cost Sharing, FEMA- 1391-DR-NY, Project Worksheets (PWs) 206, 574 & 579

Dear Mr. Agostino,

Thank you for your letter dated December 30, 2002, forwarding the second appeal on behalf of the New York State Department of Health. The Department is appealing FEMA’s refusal to pay for the non-Federal share of Medicaid costs.

On April 29, 2002, and May 30, 2002, the State submitted a first appeal on behalf of the Department of Health. In its appeal, the Department requests that FEMA fund “health care costs which are not reimbursable under other federal programs” and consider paying for the State program that went beyond traditional Medicaid. After a thorough review of the documentation provided, the Acting Regional Director responded on
September 30, 2002, stating the appeal was denied because no Federal grant funds can be used to pay the local match of another Federal grant unless the grant legislation authorizes that type of use of Federal funds.

The Department of Health of the State of New York submitted a second appeal for medical care and services on December 27, 2002. In its appeal, the State maintains that due to damage to its facilities and the extensive nature of the incident “the disaster effectively shut down the Medicaid program….. to new applicants.” However, the Department realized the fastest way to implement its program was to use the existing structures and processes of the Medicaid program and has requested FEMA pay for the state share of the program costs. The applicant also argued that FEMA has considerable flexibility in distributing Stafford Act funds. We have reviewed the facts of the case and determined the applicant did indeed utilize funds of another Federal agency. The Code of Federal Regulations 44 CFR §13.24(b)(1) reads, “Except as provided by Federal statute, a cost sharing or matching requirement may not be met by costs borne by another Federal grant.” In addition, we see no provision for funding discretion in the interpretation of this regulation. Therefore, I am denying the appeal.

Please inform the applicant of my decision. My determination is the final decision on this matter in accordance with 44 CFR §206.206. The denial of this appeal does not preclude FEMA from considering the costs requested as “associated” costs pursuant to authority recently provided FEMA in the Consolidated Appropriations Resolution, 2003, P.L. 108-7.

Sincerely,
/S/
Laurence W. Zensinger
Acting Director
Recovery Division
Emergency Preparedness and Response Directorate

cc: Joseph F. Picciano
Acting Regional Director
Region II

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