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Reform Update: Using expansion dollars for health plans may be costly, GAO says
Allowing states to use federal Medicaid expansion dollars to buy low-income adults private health plans on the federal insurance exchange may cost the federal government significantly more than if those states simply expanded their traditional Medicaid programs, the Government Accountability Office reported (PDF). The GAO said the CMS will be spending about $778 million more over three years for Arkansas’ Medicaid expansion program than what the spending limit would have been if the cap were based on the state’s actual payment rates for services under traditional Medicaid. The CMS authorized a nearly $4 billion for Arkansas’ three-year demonstration program, the first state program approved to test the private-plan approach…Read More
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