United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2003-07-10 monographic deposited born digital 51 p. GA 1.13:GAO-03-620 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-03-620 P0b002ee1803770b6 f:d03620 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-03-620 machine generated eng fdlp REPORT GAOREPORTS-GAO-03-620 GAO-03-620 Economic analysis Federal aid programs Health care programs Managed health care Health care costs Federal/state relations State-administered programs Medicaid Equitable Federal Medical Assistance Percentage Formula Other Written Product A07511 A primary goal in establishing Medicaid's statutory formula, whereby states with lower per capita incomes (PCI) receive higher rates of federal reimbursement for program costs, was to narrow differences among states in their ability to fund Medicaid services. States' ability to fund services depends on their financial resources in relation to their number of and costs to serve people in poverty. GAO and others have testified before Congress that the current formula does not address wide differences among states in their ability to fund their Medicaid programs and that the formula's reliance on PCI is the primary cause. GAO was asked to determine the extent to which the formula narrows these differences and to identify factors that impede further narrowing of differences. To evaluate the extent to which the formula narrows differences in states' funding ability, GAO used an alternative to PCI that more directly measures states' resources, number of people in poverty, and cost of providing services to this population. Using this measure, GAO determined the effect of the current formula by comparing states' funding ability before and after receiving their federal matching aid. If differences in funding ability were eliminated, the formula would have reduced differences by 100 percent. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-03-620/html/GAOREPORTS-GAO-03-620.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-03-620/pdf/GAOREPORTS-GAO-03-620.pdf GAO-03-620 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-03-620 Other Written Product GAO-03-620; Medicaid Formula: Differences in Funding Ability among States Often Are Widened; Economic analysis Federal aid programs Health care programs Managed health care Health care costs Federal/state relations State-administered programs Medicaid Equitable Federal Medical Assistance Percentage Formula Volume 72 Page 1013 72 Stat. 1013 Volume 74 Page 924 74 Stat. 924 Volume 79 Page 286 79 Stat. 286 Volume 86 Page 1329 86 Stat. 1329 Volume 111 Page 251 111 Stat. 251 Volume 114 Page 2763 114 Stat. 2763 Public Law 85-840 Public Law 86-778 Public Law 89-97 Public Law 92-603 Public Law 105-33 Public Law 106-554