Alternatives for Improving the Distribution of Funds

HRD-91-66FS: Published: May 20, 1991. Publicly Released: May 20, 1991.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO reviewed alternatives designed to improve the equitable distribution of Medicaid funds among the states.

GAO found that: (1) federal and state Medicaid spending totalled about $71 billion for fiscal year (FY) 1990; (2) one alternative reduced the statutorily guaranteed state minimum reimbursement rate from 50 to 40 percent and considered a state's ability to finance program services from state revenues and the number of people in poverty; (3) a budget-neutral 40-percent alternative would have reallocated 4.2 percent of the $34.3-billion federal share of Medicaid distributed to states in FY 1989, with 24 states gaining additional funds and 26 losing funds; (4) the 40-percent alternative assuming a 1-percent increase and a 40-percent alternative assuming a 1.5-percent increase in the federal share would both result in 26 states gaining funds; (5) a budget-neutral 50-percent alternative and a 50-percent alternative assuming a 1-percent increase would result in 28 states losing funds; and (6) a 50-percent alternative assuming a 1.5-percent increase would result in 27 states losing some Medicare funds.

Mar 19, 2018

Mar 8, 2018

Feb 20, 2018

Feb 8, 2018

Feb 5, 2018

Jan 30, 2018

Jan 23, 2018

Jan 17, 2018

Jan 16, 2018

Looking for more? Browse all our products here