CMS Should Watch Medicaid Accounting, GAO Says

In a March 16 report, the government's General Accounting Office said the Centers for Medicare and Medicaid Services should closely monitor how states use the upper payment limit, a maximum price that the federal government pays as its share of Medicaid costs. The report, titled Medicaid: Improved Federal Oversight of State Financing Schemes Is Needed, says that some states use accounting techniques that inflate program costs — closer to the upper payment limit — to acquire higher program payments from the federal government.

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