United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Health, Education, and Human Services Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-07-27 monographic deposited born digital GA 1.13:T-HEHS-95-226 https://www.govinfo.gov/app/details/GAOREPORTS-T-HEHS-95-226 P0b002ee180378ce1 f:the95226 DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-HEHS-95-226 machine generated eng fdlp REPORT GAOREPORTS-T-HEHS-95-226 T-HEHS-95-226 Medicaid programs State-administered programs Disadvantaged persons Health care cost control Federal/state relations Federal aid to states Cost sharing (finance) Health care services Formula grants Taxpayers Testimony HEHS When the Medicaid program was established in 1965, a matching formula was developed to narrow differences likely to arise among Medicaid programs in wealthier and poorer states. By giving poorer state a higher federal match, it was believed that disparities would be reduced across states in (1) population groups and services covered in each state program and (2) the tax burden imposed by the financing of Medicaid relative to the size of the state's financial resources. GAO testified that the matching formula, with its reliance on per capita income as a measure of state wealth, has not significantly reduced wide differences in states' Medicaid programs or the tax burdens to support them. Large disparities persist in coverage of population groups and types of services as well as in the burdens that state taxpayers bear in financing state programs. Modifying the formula could enhance the ability of federal payments to narrow program disparities. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-HEHS-95-226/html/GAOREPORTS-T-HEHS-95-226.htm GAO/T-HEHS-95-226 https://www.govinfo.gov/app/details/GAOREPORTS-T-HEHS-95-226 Testimony GAO/T-HEHS-95-226; Medicaid: Matching Formula's Performance and Potential Modifications; Medicaid programs State-administered programs Disadvantaged persons Health care cost control Federal/state relations Federal aid to states Cost sharing (finance) Health care services Formula grants Taxpayers