Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Expected Medicaid Savings Unrealized; Performance, Cost Information Not Timely for Legislative Purposes

Report 01-61, November 2001




Report Summary

  • Over the past few years the Legislature enacted a number of cost reduction initiatives intended to curb Medicaid costs. Despite these initiatives, anticipated savings have not been realized, and expenditures continued to increase, surpassing appropriations in 1999-00 and 2000-01.
  • A weakness in the Medicaid program that has hindered the budgeting process is that the agency has not routinely provided the Legislature with information on the extent to which it has achieved the cost savings anticipated by cost reductions. Such reporting is necessary to keep the Legislature informed of the impact of its policy decisions and to assist the Social Services Estimating Conference in identifying budget needs.
  • The agency tracks and reports on PBĀ² outcome measures that indicate the general health status of Medicaid clients. However, because of data delays and factors outside of Medicaid's control that can influence health status, these health outcomes are of limited usefulness for assessing program performance. They should be supplemented with key internal measures of processes and functions that affect health outcomes.
  • The Agency for Health Care Administration needs to provide better and more timely information to assist the Legislature in making budget and policy decisions. We, therefore, recommend that the Legislature direct the agency to report quarterly on the status of legislative cost reduction initiatives and formally monitor key processes and functions that affect the health status of Medicaid clients.


Related Reports
  1. Progress Report: Medicaid Should Improve Cost Reduction Reporting and Monitoring of Health Processes and Outcomes
    Report 04-53 August 2004
  2. Progress Report: Medicaid Disease Management Initiative Has Not Yet Met Cost-Savings and Health Outcomes Expectations
    Report 04-34 May 2004
  3. Medicaid Field Offices Can Improve Efficiency and Effectiveness; State Could Outsource Some Activities
    Report 04-30 May 2004
  4. Medicaid Program Integrity Efforts Recover Minimal Dollars, Sanctions Rarely Imposed, Stronger Accountability Needed
    Report 01-39 September 2001
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
social services, health, medicaid, pb2, cost savings initiatives, cost reductions, performance measures, health outcomes