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HEHS-96-11R 1 (1995-10-02)

handle is hein.gao/gaobaclau0001 and id is 1 raw text is: AO United States A0 General Accounting Office Washington, D.C. 20548 Health, Education and Human Services Division B-226323 October 2, 1995 The Honorable Michael Bilirakis House of Representatives Dear Mr. Bilirakis: This letter responds to your request of September 21, 1995, for our comments on the accuracy of estimates attributed to GAO in a letter you had received from Florida Governor Lawton Chiles. The estimates in question refer to the impact on Florida of a formula proposed by the House Commerce Committee in a bill that would establish the MediGrant program, a new program that would replace the existing Medicaid program. You also asked that we provide other information regarding the formula in the Committee bill. Specifically, Governor Chiles' letter stated that, according to GAO figures, Florida would lose $7.6 billion under the House proposal. We did not make such an estimate. In discussions with state officials, they estimated the federal funding the state expects to receive under current law and compared that with the grant amounts Florida would receive under the House MediGrant formula. We only prepared the grant estimates under the House Committee bill. In estimating Florida's funding under current law, state officials assumed that Florida's federal funding would increase approximately 11.6 percent per year. We did not evaluate the assumptions used by the state in making that forecast. However, in a recent letter to the Chairman of the House Committee on Commerce on our review of the Urban Institute's Medicaid forecasts, we noted the difficulties of accurately predicting future forecasts of Medicaid spending, particularly at the state level. Based on the state's assumptions and our estimated funding under the House bill, state officials estimated that Florida would receive $7.6 billion less under the House formula than it would under current law over the period from fiscal year 1996 through 2002 (see enclosure 1). You also asked us to estimate the state match that would be required under present law and under the House proposal. We used the state's fiscal year 1996 federal matching GAO/HEHS-96-11R MediGrant: Florida K (L9o I

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