CHA News Article

GAO Releases Report on Medicaid Managed Care Spending and Oversight

The U.S. Government Accountability Office (GAO) has released the attached report outlining federal spending on Medicaid managed care and state oversight of costs and enrollment. The report analyzed several factors for eight states, including California: federal expenditures for Medicaid managed care and the range in payments made to managed care organizations; medical loss ratio standards as compared with federal standards for other sources of health coverage; and methods for automatically assigning Medicaid beneficiaries to managed care organizations’ plans. GAO found that federal spending increased significantly from fiscal year 2004 through fiscal year 2014, representing 38 percent of total federal Medicaid spending in fiscal year 2014 — $14.3 billion was spent in California alone.