Health Care:

Cost Factors in CARE Act Formulas

HEHS-95-256R: Published: Sep 15, 1995. Publicly Released: Sep 15, 1995.

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Pursuant to a congressional request, GAO reviewed the effects of proposed acquired immune deficiency syndrome Title I and II funding on eligible metropolitan areas (EMA) and states. GAO noted that: (1) the proposed funding formula, with no cost factor, would increase Title I funding for 30 EMA, decrease funding for 10 EMA, and remain the same for 9 EMA; (2) after 5 years, Title I funding would increase for 32 EMA, decrease for 10 EMA, and remain the same for 7 EMA; (3) Title II funding with no cost factor, would increase during the first year for 15 states, decrease for 13 states, and remain the same for 26 states; (4) some states' Title II funding would remain unaffected because they received minimum grants, reached the funding floor, or were exempt from losing additional funds; and (5) after 5 years, Title II funding would increase for 19 states, decrease for 17 states, and remain the same for 18 states.

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