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Demonstration Projects
Mike Mitka
JAMA. 2008;299(14):1657.
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| Since this article does not have an abstract, we have provided the first 127 words of the full text and any section headings. |
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The US Department of Health and Human Services did not adequately ensure that Medicaid demonstration projects in Florida and Vermont, intended to explore new ways to deliver and pay for health care (such as through managed care), were budget neutral as required by federal law, according to the Government Accountability Office (GAO). As a result, the GAO estimated that Medicaid spent an excess $6.9 billion in Florida and $246 million more in Vermont for the 5-year demonstration projects.
The excess costs angered some congressional Democrats. Frank J. Pallone (D, NJ), chairman of the Energy and Commerce Committee's Health Subcommittee, said in a release, "Once again, beneficiaries are being moved into managed care plans that offer fewer benefits but produce zero savings for the federal government."
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