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

Progress Report: Medicaid Should Improve Cost Reduction Reporting and Monitoring of Health Processes and Outcomes

Report 04-53, August 2004

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Report Summary

  • 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.

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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, veterans, medicaid, medicaid, medicaid cost savings, medicaid health outcomes, medicaid recipients, medicaid costs reduction, medicaid expenditure growth, medicaid budget growth, health care, human services, children, family, insurance, budget, money, disease, hospital cost, veterans health care, nursing homes, privatization, domiciliary, veterans' benefits, veterans' claims, veterans' educational benefits