The Bush administration is proposing that states submit in advance their Medicaid spending plans so federal officials can curb questionable practices, according to news reports.
It also proposes a cap on federal payments to states for administrative costs related to Medicaid, according to Leighton Ku, an analyst for the Center on Budget and Policy Priorities. These proposals were included in draft legislation forwarded last week to Senate and House leaders, the Senate Finance Committee and the House Energy and Commerce Committee.
The Department of Health and Human Services is proposing to eliminate Medicaid matching funds to states that use the money for other purposes, according to published reports.
