ADP Systems

Better Control Over States' Medicaid Systems Needed Gao ID: IMTEC-89-19 August 2, 1989

GAO evaluated the Health Care Financing Administration's (HCFA) management of and control over federal funds for helping states, to acquire, operate, and enhance automated Medicaid systems by reviewing 129 automation-funding requests states made between November 1985 through July 1988.

GAO found that HCFA: (1) approved 116 automation requests, totalling about $119 million, which lacked such federally required supporting evidence as cost and benefit analyses and evaluations of alternatives; (2) did not adequately define the information states needed to include in automation requests; (3) lacked information on the status of 112 projects costing about $110 million, since it did not require states to report on approved automation projects; (4) generally did not determine whether completed automation projects were providing the expected benefits; and (5) funded automation enhancements at a 90-percent funding rate, although the applicable laws authorized 90-percent funding for automation acquisition and 75-percent funding for automation operation.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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