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Medicaid: Primer on Financing Arrangements

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Report Type Reports and Testimonies
Report Date July 14, 2020
Release Date July 14, 2020
Report No. GAO-20-571R
Summary:

This report, based on past work, describes ways states pay for their share of Medicaid, a program that finances health care for certain low-income people and others through a federal-state partnership.

The federal government provides matching funds based in part on state estimates of their costs. States can use money from local governments and other sources to pay some costs.

We found that through certain financing arrangements, states can lower their contribution and shift Medicaid costs to the federal and local governments and care providers. This can increase the federal share and poses risks to the program’s sustainability.

Both federal and state governments fund Medicaid

A graphic of federal, Medicaid, and state funding

A graphic of federal, Medicaid, and state funding

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