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<classification authority="sudocs">GA 1.13:HEHS-95-103</classification>
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 <subject>Financial analysis</subject>
 <subject>Health care cost control</subject>
 <subject>Medicaid programs</subject>
 <subject>Federal/state relations</subject>
 <subject>Intergovernmental fiscal relations</subject>
 <subject>State-administered programs</subject>
 <subject>Financial management</subject>
 <subject>Welfare benefits</subject>
 <subject>Health services administration</subject>
 <subject>Block grants</subject>
 <identifier>AFDC</identifier>
 <identifier>Aid to Families with Dependent Children Program</identifier>
 <identifier>Supplemental Security Income Program</identifier>
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<titleInfo>
 <title>Medicaid: Restructuring Approaches Leave Many Questions</title>
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<abstract>Pursuant to a congressional request, GAO provided information on various
proposals for restructuring the Medicaid Program, focusing on the: (1)
different restructuring approaches and their implications for
federal-state financing and program administration; and (2) need to
establish a reserve fund to offset state tax losses and increased
enrollments.&lt;p/&gt;GAO found that: (1) using block grants to fund state Medicaid programs
would increase states&apos; control over federal expenditures and
administrative flexibility, which could result in increased operational
efficiency and effectiveness; (2) on the other hand, if states reduce
their Medicaid contributions, they would be more at risk for controlling
program spending; (3) the block grant and cap proposals have not
addressed how much administrative flexibility states would receive; (4)
federalizing the Medicaid program would reduce program inequities and
administrative costs, but the federal government would face difficulties
in meeting localities&apos; individual needs and operating conditions; (5)
the impact of splitting Medicaid into long-term and acute-primary care
programs would depend on the how the split is made and how
responsibilities are distributed between the federal and state
governments; (6) there has been little quantitative analysis on the
potential effects of restructuring Medicaid on financing and
administrative functions; and (7) states&apos; Medicaid spending is sensitive
to economic conditions and a reserve fund could be one way to assist
states during economic downturns if strict limits are placed on federal
contributions.</abstract>
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<note>Letter Report</note>
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 <searchTitle>GAO/HEHS-95-103; Medicaid: Restructuring Approaches Leave Many Questions;
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<subject>
 <topic>Financial analysis</topic>
 <topic>Health care cost control</topic>
 <topic>Medicaid programs</topic>
 <topic>Federal/state relations</topic>
 <topic>Intergovernmental fiscal relations</topic>
 <topic>State-administered programs</topic>
 <topic>Financial management</topic>
 <topic>Welfare benefits</topic>
 <topic>Health services administration</topic>
 <topic>Block grants</topic>
 <topic>AFDC</topic>
 <topic>Aid to Families with Dependent Children Program</topic>
 <topic>Supplemental Security Income Program</topic>
 <topic>New Federalism Program</topic>
 <topic>Food Stamp Program</topic>
 <topic>Special Supplemental Food Program for Women, Infants, and</topic>
 <topic>Children</topic>
 <topic>WIC</topic>
 <topic>Job Opportunities and Basic Skills Training Program</topic>
 <topic>JOBS Program</topic>
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