The amount that may be waived is capped
What the document says“The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the erroneous excess payments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year that exceed the allowable error rate of 0.03.”
The section adds a new clause (ii) to section 1903(u)(1)(B) of the Social Security Act capping what the Secretary may waive for a fiscal year at the erroneous excess payments described in subparagraph (D)(i)(II) for that year above the allowable error rate of 0.03.
What the document actually says“The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the erroneous excess payments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year that exceed the allowable error rate of 0.03.”
The Secretary may not waive more than a set sum. That sum is the excess payments above the allowed error rate.
Waiving means letting the state off the cut. The cap limits how far that can go. It is worked out year by year.
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