Appropriateness of Missouri's Mingling of Medicaid Reimbursement Funds With State General Revenue Funds

HRD-81-105: Published: Jun 30, 1981. Publicly Released: Jul 9, 1981.

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GAO reviewed the Medicaid law and regulations to determine whether it was legal for the State of Missouri to count Medicaid payments for services provided by the State's Department of Mental Health as revenue to the State general fund and whether this practice exacerbated cuts in patient care.

The State's handling of Medicaid payments to its Department of Mental Health was permissible under Federal law and regulations. While the budget cuts had a dramatic impact on the department, the impact was expected to be relatively short lived, with most of the reduction in employees being restored.

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