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Document Number: 1517

Medicaid in Schools: Improper Payments Demand Improvements in HCFA Oversight - In 1999-2000, the General Accounting Office (GAO) surveyed how states and school districts apply for, and appropriate, federal Medicaid funds and found that Medicaid dollars often were not going to the places providing the services. Some states were keeping between 50-85% of Medicaid dollars meant for the schools or districts that provided health services to needy children. In addition, some districts were paying a fee to third parties who helped them apply for Medicaid funds, further reducing the districtís share, sometimes to as little as $7.50 for every $100 they billed to Medicaid. The GAO recommended changes in the way that schools bill to get more dollars flowing to the districts and schools providing the services. (General Accounting Office, April 2000)...

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