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GAO: Medicaid Demonstrations: Federal Action Needed to Improve Oversight of Spending

May 1, 2017

Pursuit's Take

Many states conduct Medicaid demonstrations, which allow them to test new approaches for delivering Medicaid services. The Centers for Medicare & Medicaid Services monitors spending under these demonstrations to ensure that the federal government does not pay more for them than it would have paid for the state’s traditional Medicaid program.

GAO found that, over the last decade, Medicaid has spent increasing amounts on these demonstrations. GAO also found inconsistences in how CMS monitors these funds.

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