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Office of Program Policy Analysis and Government Accountability

Progress Report: Medicaid Should Improve Cost Reduction Reporting and Monitoring of Health Processes and Outcomes, Report No. 04-53, August 2004
Full report in PDF format

Agency Response

  • While Medicaid expenditures have continued to increase, the annual rate of growth has slowed since Fiscal Year 2001-02.  However, costs are expected to grow 9.67% in Fiscal Year 2003-04.  In addition, expenditures have exceeded appropriations during four of the last five years.  To control rising expenditures, the Legislature has enacted a number of cost reduction initiatives since Fiscal Year 1997‑98, with the expectation that these initiatives would save $1.57 billion.  The Agency for Heath Care Administration now reports realizing 81% of anticipated cost savings, an improvement over its past performance.
  • The agency has improved the frequency and quality of information on cost reductions that it provides to the Legislature.  However, it could make further improvements that provide more detailed information on attained savings.
  • The agency's reporting on legislative outcomes for Medicaid is not timely enough to be of use in making decisions.  In addition, the agency continues to lack meaningful information on health outcomes, in part because it still does not formally monitor processes that affect outcomes.  The agency has improved its performance for some legislative outcome measures but only met the legislative standards for only 3 of 13 measures for Fiscal Year 2001‑02.

What were our earlier findings?

Report No. 01-61 Justification Review: Expected Medicaid Savings Unrealized; Performance, Cost Information Not Timely for Legislative Purposes, published in November 2001.

Which Government Program Summaries contain related information?

Agency for Health Care Administration
Medicaid Health Care Services

What other OPPAGA-related materials are available?

  • Report No. 06-07 Inflated Pricing and Confidential Information Prevent Medicaid from Ensuring Lowest Prescription Drug Prices, published in January 2006.
  • Report No. 04-34  Progress Report: Medicaid Disease Management Initiative Has Not Yet Met Cost-Savings and Health Outcomes Expectations, published in May 2004.

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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