Special Medicaid funds help most states but prompt oversight concerns

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Special Medicaid funds help most states but prompt oversight concerns
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It's not Medicaid expansion. Instead, it's obscure federal funding that over 35 states have used to boost payments for hospitals and other providers under Medicaid. But are states being held accountable?

Medicaid is the government health insurance program for low-income and disabled patients. It’s jointly financed by the states and the federal government.

But patient advocates and Democratic lawmakers in Georgia said providing insurance coverage for the medical needs of the uninsured by adopting Medicaid expansion is more urgent. Hospitals, like Emanuel Medical Center, would benefit from Medicaid reimbursements for patients who now often rack up unpaid bills for care.

“CMS initially was surprised by the volume of states’ directed payment proposals,” said Lipson. Some states have 25 or more, she added. They must be renewed annually. Often states finance their portion through hospital assessments or money transferred from public funds, such as hospital authorities, county governments, and state agencies.

“It’s a tremendous benefit for us,” said Ryan Loke, Grady’s chief policy officer. “Without this money, Grady would be in a lot worse position.” The Georgia Hospital Association said the directed payment money is helpful but won’t cover costs of charity care for the uninsured.

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