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HRD-76-139 1 (1976-07-01)

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REPORT TO THE

SUBCOMMITTEE ON HEAb,;~E&Jv~ED ', r qq 3)4

SENATE COMMITTEE ON FI. VrV0Fo1C
                                      Ji    7,


BY THE COMPTROLLER GE1
OF THE UNITED STATES


                                         LM099326



North Carolina's

Medicaid Insurance Agreement:

Contracting Procedures

Need Improvement

Department of Health, Education, and Welfare


North Carolina's approach to controlling
increasing Medicaid costs by negotiating an
insurance agreement with a private contrac-
tor could   be  improved   by  encouraging
maximum competition and by more mean-
ingfully evaluating proposed contract prices.
This project has been the subject of prema-
ture and overstated claims of benefits, which
have been attributed to the agreement and
related contract negotiations.


JULY T, 976


HRD-76-139


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