GAO reports on administrative cost of Medicaid work requirements

The Centers for Medicare & Medicaid Services should require states that propose Medicaid work requirements and other demonstrations to project the cost of administering them, the Government Accountability Office said in a report released yesterday. CMS has approved nine state demonstrations that require beneficiaries to work or participate in other activities, such as training, to maintain Medicaid eligibility. GAO examined the first five demonstrations and found their estimated administrative costs ranged from under $10 million to more than $250 million. CMS approved federal funds for administration costs in three of the states that did not appear allowable or appropriate, GAO said, and recommended CMS improve its oversight procedures for administrative costs. CMS did not concur with the recommendations in the report. A federal judge this year blocked Medicaid work requirements in New Hampshire and in Kentucky and Arkansas, which are among the five states examined in the GAO report. The report was requested by Democratic leaders of the Senate Finance and House Energy and Commerce committees.