CMS has already made some changes as a result of the GAO’s findings, according to the senators, including requiring all regional offices to use a checklist when reviewing state’s rate-setting submissions. But they say more needs to be done.
The report raises questions with Medicaid contracts in two states in particular. Tennessee received $5 billion a year in federal funds for rates that had not been certified by an actuary, as required by federal regulations, the report says. And in Nebraska the Centers for Medicare and Medicaid Services (CMS) did not complete a full review of rate setting since new requirements became effective, leaving doubts as to whether they are in compliance.