The Florida Legislature
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Office of Program Policy Analysis and Government Accountability

Expected Medicaid Savings Unrealized; Performance, Cost Information Not Timely for Legislative Purposes, Report No. 01-61, November 2001
Full report in PDF format

  • 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 PB² 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.

Which Government Program Summaries contain related information?

Medicaid Health Care Services
Agency for Health Care Administration (AHCA)

What other OPPAGA-related materials are available?

  • Report No. 04-53 Progress Report: Medicaid Should Improve Cost Reduction Reporting and Monitoring of Health Processes and Outcomes, published in August 2004.
  • Report No. 04-34  Progress Report: Medicaid Disease Management Initiative Has Not Yet Met Cost-Savings and Health Outcomes Expectations, published in May 2004.
  • Report No. 04-30 Special Report: Medicaid Field Offices Can Improve Efficiency and Effectiveness; State Could Outsource Some Activities, published in May 2004.
  • Report No. 01-39 Justification Review: Medicaid Program Integrity Efforts Recover Minimal Dollars, Sanctions Rarely Imposed, Stronger Accountability Needed, published in September 2001.
  • Report No. 01-27  Justification Review: Medicaid Disease Management Initiative Sluggish, Cost Savings Not Determined, Design Changes Needed, published in May 2001.
  • Report No. 01-24 Justification Review: Health Care Regulation Program Agency for Health Care Administration, published in May 2001.
  • Report No. 01-10 Justification Review: Growth in Medicaid Prescription Drug Costs Indicates Additional Prudent Purchasing Practices Are Needed, published in February 2001.
  • Report No. 97-11 Follow-up Report on Medicaid Managed Care Options, published in October 1997.
  • Report No. 96-14 Follow-up Report on Efforts to Identify and Deter Provider Fraud and Abuse in Florida's Medicaid Program, published in November 1996.
  • Report No. 94-47 Follow-up Review of Medicaid Managed Care, published in April 1995.
  • Report No. 94-18 Performance Review of Medicaid Managed Care Options, published in December 1994.
  • Report No. 12287 Performance Audit of Efforts to Identify and Deter Provider Fraud and Abuse in Florida's Medicaid Program, published in April 1994.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
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