Monday, June 30, 2008

GAO says CMS needs to provide more oversight over supplemental Medicaid payments

Medicaid program is shared between the federal government and states. States pay qualified providers for covered Medicaid services and receive federal matching funds from the Department of Health & Human Services’ (HHS) Centers for Medicare & Medicaid Services (CMS) for expenditures authorized in their state Medicaid plans. In addition to these standard Medicaid payments, most states make supplemental payments to certain providers, which are also matched by federal funds. GAO was asked for information about Medicaid supplemental payments. GAO examined (1) what information states report about supplemental payments on Medicaid expenditure reports and (2) in selected states, how much was distributed as supplemental payments, to what types of providers, and for what purposes. GAO analyzed CMS’s Medicaid expenditure reports and surveyed five states that make large supplemental payments.

What GAO Recommends
GAO recommends that the Administrator of CMS (1) expedite issuance of the final rule implementing additional DSH reporting requirements and (2) develop a strategy to identify all of the supplemental payment programs established in states’ Medicaid plans and review those programs that have not been subject to review under CMS’s 2003 initiative. CMS generally agreed with these recommendations.

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