States' Use of Medicaid Maximization Strategies to Tap Federal Revenues

Brief

States' Use of Medicaid Maximization Strategies to Tap Federal Revenues

Program Implications and Consequences

Medicaid provides states with a federal financial match for state dollars spent on health care services for low-income people. This report describes program expansions and revenue expansions states adapted to maximize federal Medicaid revenue. While the matching rate approach encouraged states to spend more on health care for low-income people than they would otherwise, it also provided incentives for states to find financial loopholes. Changes in Medicaid to address the financial integrity of Medicaid are addressed.

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