Federal Medicaid Funding Not Equitable, Watchdog Claims

Law360, New York (May 10, 2013, 5:18 PM EDT) -- The current formula used to distribute federal Medicaid funding doesn’t accurately reflect states’ actual Medicaid needs or burdens and could be made more equitable by using an alternative allocation mechanism, a government watchdog said Friday.

According to the Government Accountability Office, the current federal Medicaid matched funding formula, known as the Federal Medical Assistance Percentage, or FMAP, only takes into account states' average per capita income as compared with national PCI when determining funding. By using several other readily available public data sources, a new formula...
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