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Medicaid: CMS Action Needed to Ensure Compliance with Abortion Coverage Requirements

GAO-19-159 Published: Jan 04, 2019. Publicly Released: Feb 04, 2019.
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Fast Facts

To receive federal funding, state Medicaid programs are supposed to meet federal health care coverage requirements. These include coverage for abortion, but only in cases of rape, incest, or if the woman's life is endangered.

We found state-reported practices that did not comply with federal requirements.

1 state did not cover abortion in cases of rape or incest.

14 states did not cover the drug used in non-surgical abortions, even when the abortion was eligible for federal funding.

We made 3 recommendations to CMS, the Medicaid administrator, to ensure compliance with federal requirements for abortion coverage.

State-Reported Information on Medicaid Coverage of Abortions

This color-coded map shows the varying policies in 50 states and the District of Columbia.

This color-coded map shows the varying policies in 50 states and the District of Columbia.

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Highlights

What GAO Found

Women could face various challenges accessing abortions depending on where they live, and Medicaid beneficiaries may face additional challenges in some states. GAO identified seven key factors that could pose challenges to women accessing abortions, based on its interviews with providers and review of the literature: gestational limits, mandatory counseling, out-of-pocket costs, parental involvement requirements, provider availability, stigma and harassment, and waiting period requirements. The presence of these factors and their effect on abortion access—such as delays in care or increased costs—varied by state.

GAO also found that state variation in Medicaid abortion coverage and payment requirements could further complicate access for program beneficiaries. State Medicaid programs are generally required to cover abortions and can seek federal funding for such coverage when the pregnancy is the result of an act of rape or incest, or the life of the pregnant woman would be endangered unless an abortion is performed. States may also cover abortions under other circumstances, but federal funds may not be used. In GAO's survey, one state reported not covering abortions in cases of rape or incest, and 14 states reported not covering the drug used in medical abortions, which they are generally required to cover if the abortion is otherwise eligible for federal funding. Officials from the Centers for Medicare & Medicaid Services (CMS), the federal agency that oversees Medicaid, were unaware that these states were not covering the drug, and thus, have not taken any actions to address states' non-compliance.

State Variation in Medicaid Coverage of Abortions

State Variation in Medicaid Coverage of Abortions

Note: Unlike surgical abortions, medical abortions use drugs to terminate a pregnancy.

Federal information on the number of abortions eligible for federal Medicaid funding is incomplete, limiting CMS's ability to ensure proper payments and states' coverage of such abortions. For example, the form CMS-64, which states use to report Medicaid expenditures, does not collect information on the number of abortions paid for by managed care—the delivery system serving most Medicaid beneficiaries. It also does not include this information from 8 states that GAO identified as incorrectly reporting abortion costs on the form. While also not complete, state information reported in GAO's survey was more comprehensive, and showed a wide range in the number of abortions eligible for federal funding covered across the 42 states that reported such information.

Why GAO Did This Study

While federal law prohibits federal funding for abortions in most circumstances, state Medicaid programs are required to cover abortions in limited circumstances. CMS is responsible for monitoring state compliance with federal requirements. However, concerns have been raised about challenges women may face obtaining Medicaid coverage for abortions eligible for federal funding, as well as with abortion access more broadly.

GAO was asked to review issues related to abortion access. This report examines (1) factors that may present challenges to women, including Medicaid beneficiaries, accessing abortions; and (2) federal and state information on the number of abortions eligible for federal Medicaid funding. GAO reviewed federal laws, regulations, and data sources; surveyed and received responses from Medicaid program officials in all 50 states and the District of Columbia; conducted a literature review; and interviewed CMS officials and eight abortion providers selected based on factors such as variation in Medicaid abortion coverage and geography.

Recommendations

GAO is making three recommendations to CMS to ensure state compliance with federal requirements for Medicaid abortion coverage, including coverage of the drug used for medical abortions. The Department of Health and Human Services concurred with these recommendations.

Recommendations for Executive Action

Agency Affected Recommendation Status
Centers for Medicare & Medicaid Services CMS should take action to ensure South Dakota's Medicaid state plan provides coverage for abortions in cases of rape and in cases of incest, in addition to life endangerment, to comply with federal law, which currently requires such coverage. (Recommendation 1)
Open
In June 2019, HHS officials reported they were reviewing agency processes and would determine the best course of action moving forward. Officials said they would provide an update on actions by 12/20/2019. In May 2022, HHS officials reported that this topic is of significant importance and they were continuing to actively determine strategies to ensure the availability of covered services in the Medicaid program, but provided no further details. As of August 2023, CMS had not provided additional information on steps it had taken to address this recommendation. As such, this recommendation remains open.
Centers for Medicare & Medicaid Services CMS should determine the extent to which state Medicaid programs are in compliance with federal requirements regarding coverage of Mifeprex and take actions to ensure compliance, as appropriate. (Recommendation 2)
Open
In June 2019, HHS officials reported they were reviewing agency processes and would determine the best course of action moving forward. Officials said they would provide an update on actions by 12/20/2019. In May 2022, CMS officials reported that this topic is of significant importance and they were continuing to actively determine strategies to ensure the availability of covered services in the Medicaid program, but provided no further details. Additionally, HHS leadership reported that they decided not to take action at this time.. As of August 2023, CMS had not provided additional information on steps it had taken to address this recommendation. As such, this recommendation remains open.
Centers for Medicare & Medicaid Services CMS should determine the extent to which state Medicaid programs are accurately reporting fee-for-service abortions on line 14 of the CMS-64 and take actions to ensure accuracy, as appropriate. (Recommendation 3)
Open
In June 2019, HHS officials reported they were developing written instructions for states to reiterate fee-for-service reporting requirements for abortions provided in their Medicaid programs. Officials said they would provide an update on actions by 12/20/2019. In May 2022, HHS reported that they continue to work on developing written instructions to reiterate the reporting requirements for "fee for service" abortions to states and expects to issue instructions by December of 2022. As of August 2023, CMS had not provided additional information on the status of these efforts. As such, this recommendation remains open.

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Topics

Reproductive health careAbortionsBeneficiariesCompliance oversightFederal fundsMedicaidMedicaid fundingRapeReproductive health careWomenWomen's health