Health Care:

Analysis of 'Florida's Fair Share'

HEHS-96-168R: Published: Jun 10, 1996. Publicly Released: Jun 10, 1996.

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Pursuant to a congressional request, GAO commented on the appropriateness of the Medicaid funding formula contained in H.R. 3507. GAO noted that: (1) over time, the proposed formula would cause Medicaid funding distribution to more closely reflect states' poverty and elderly populations; (2) there are more generous matching rates for low-income states that spend more on Medicaid services for eligible recipients; (3) because Florida spends less on benefits for eligible recipients than the other states reviewed, it receives less matching federal funds; (4) the new funding formula would establish targets for federal funding in proportion to the poor population in each state; (5) each state's federal allocation would increase depending on the differences between the level of federal funding and the target amount; and (6) by giving states like Florida higher growth rates, the new formula would enable states to receive federal funding in proportion to their poverty population.

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