Comments on "Health Costs Can Be Reduced by Millions of Dollars if Federal Agencies Fully Carry Out GAO Recommendations" (HRD-80-6)

Information was provided on the cost containment implications of a November 13, 1979, report on GAO recommendations in the area of health costs made between January 1, 1974, and December 31, 1978. The report discussed GAO recommendations for improving three general types of Federal programs: (1) programs which provide direct health care services through the health delivery systems of the Departments of Defense and Health, Education, and Welfare (HEW), and the Veterans Administration; (2) programs which pay for health care services for the aged, the disabled, the poor, and Federal military and civilian personnel and their dependents; and (3) grant and contract health programs of the Public Health Service. The discussion included reference to the cost containment implications of specific reports dealing with Medicaid expenditures for possibly ineffective drugs, the prevention of mental retardation, the Medicaid Management Information System, hospital supply prices, professional cost containment review programs, Medicaid fraud and abuse prevention, hospital cost containment efforts, and efforts to recover and properly return Medicaid overpayments. It was pointed out that, although millions of dollars have already been saved by implementing GAO recommendations, millions more could be saved if the Congress and the responsible agencies were to implement the outstanding recommendations.