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<classification authority="sudocs">GA 1.13:T-HEHS-97-91</classification>
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 <subject>State-administered programs</subject>
 <subject>Health care programs</subject>
 <subject>Health care cost control</subject>
 <subject>Medical economic analysis</subject>
 <subject>Managed health care</subject>
 <subject>Long-term care</subject>
 <identifier>Medicaid Program</identifier>
 <identifier>Hawaii</identifier>
 <identifier>Oregon</identifier>
 <identifier>Tennessee</identifier>
 <identifier>Arizona</identifier>
 <type>Testimony</type>
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 <title>Medicaid: Decline in Spending Growth Due to a Combination of Factors</title>
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<abstract>GAO discussed recent Medicaid spending trends and their potential
implications for future outlays, focusing on: (1) the variation in
Medicaid spending growth among the states, especially for the most
recent 2-year period, that culminated in the 3.3-percent growth rate in
fiscal year 1996; (2) key factors that contributed to the decrease from
previous years&apos; growth rates; and (3) the implications of these and
other factors for Medicaid expenditures in the future.&lt;p/&gt;GAO noted that: (1) GAO found no single pattern across all states that
accounts for the recent dramatic decrease in the growth of Medicaid
spending; (2) rather, a combination of factors, some affecting only
certain states and others common to many states, explains the low 1996
growth rate; (3) several states saw substantial drops in their 1996
growth rates associated with circumstances that are unlikely to recur to
dampen spending increases in future years; (4) moreover, the vast
majority of states experienced declines in their growth rates that were
moderate to limited; (5) the experiences of these states reflect a
number of factors at work, including a generally improved economy and
state initiatives to limit expenditure growth, such as implementing
managed care for primary and acute care services or alternative programs
for long-term care; (6) with an improved economy and declining
unemployment, the number of people eligible for Medicaid decreased; (7)
in addition, a dramatic slowdown in price increases for medical services
helped states control costs for certain services provided through
Medicaid; (8) while the magnitude of the effect of states&apos; programmatic
changes, such as managed care programs and long-term care alternatives,
is less clear, there is evidence that they helped to restrain program
costs; (9) however, it is likely that the 3.3-percent growth rate is not
indicative of the growth rate in the years ahead; and (10) just as a
number of factors converged to bring about the drop in the 1996 growth
rate, so a variety of factors, including a downturn in the economy,
could result in increased growth rates in subsequent years.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-97-91</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-HEHS-97-91; Medicaid: Decline in Spending Growth Due to a Combination of Factors;
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<subject>
 <topic>State-administered programs</topic>
 <topic>Health care programs</topic>
 <topic>Health care cost control</topic>
 <topic>Medical economic analysis</topic>
 <topic>Managed health care</topic>
 <topic>Long-term care</topic>
 <topic>Medicaid Program</topic>
 <topic>Hawaii</topic>
 <topic>Oregon</topic>
 <topic>Tennessee</topic>
 <topic>Arizona</topic>
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