The Government Accountability Office (GAO) issued its biennial list of the top federal programs highly susceptible to waste, fraud, abuse or inefficiency and Medicaid is once again included in the list as a high-risk program. The GAO designated Medicaid as a high-risk program because of its size, growth, diversity of programs, and concerns about the adequacy of fiscal oversight to prevent inappropriate spending. According to the GAO, stronger oversight is necessary due to ongoing enrollment and spending growth, and the program’s expansion under the Affordable Care Act, which is estimated to increase the number of individuals receiving health coverage under Medicaid by 7 million in 2014 and 11 million by 2022. The GAO report also stated that Medicaid program integrity is challenged by data systems that do not provide reliable, complete and timely data. In the report, GAO also noted that some states have established varied financing arrangements involving Medicaid supplemental payments that inappropriately increase federal Medicaid matching payments. The total amount of supplemental payments has increased in recent years from $43 billion in fiscal 2011, up from $32 billion in fiscal 2010 and $23 billion in fiscal 2006.

Link: Report