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Medicaid pilot projects cost $32 billion more than expected, GAO says
Modern Healthcare

HHS has allowed states to spend billions more on Medicaid pilot projects in recent years than the agency’s own rules allow, and the problem may grow in the future, according to a new federal audit.

States regularly apply for approval of so-called demonstration projects that provide Medicaid coverage or services to populations beyond those required by federal rules. A key factor determining whether the demonstrations are approved is whether they are budget-neutral—in other words they will not cost more than the program would have spent without the pilot.