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GGD-83-27 1 (1983-03-09)

handle is hein.gao/gaobabdxr0001 and id is 1 raw text is: 






BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES





Changing Medicaid Formula

Can Improve Distribution Of

Funds To States



The formula used to establish Federal reim-
bursement rates for State Medicaid spend-
ing is not as equitable to States as it could
be. This is because per capita income--a key
formula factor--does not adequately reflect
the greater tax burden of States with a high
proportion of the needy and because it is not
the best available measure of States' ability
to finance Medicaid from State revenue
sources. The formula also contributes to the
wide disparity in benefits provided under
State Medicaid programs.

GAO identifies formula changes that will
improve tax burden equity and reduce inter-
state program disparities in varying degrees.
Therefore, GAO presents a series of options
that could irmprove the current formula with
Federal funding either reduced, increased
or maintained at current levels.







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            C OU                                          GAO/GG D-83-27
                                                           MARCH 9, 1983

                            JcD -3O

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