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Policy Options for Improving the Transparency of Medicaid Financing

Following up on the Commission’s discussion at the December 2023 public meeting that introduced a discussion about the transparency of Medicaid financing, this presentation explored policy options for improving transparency of financing methods and financing amounts. Medicaid is jointly financed by states and the federal government, and states have flexibility to raise the non-federal share of Medicaid expenditures from multiple sources, including state general funds, health care-related taxes, and local government funds.

Each policy option is assessed based on three criteria:

  • Usefulness: Would increasing transparency be useful for enabling analyses of net Medicaid payments?
  • Comprehensiveness: Would increasing transparency provide a comprehensive perspective on all types of Medicaid financing for all types of Medicaid payments to providers?
  • Minimizing administrative burden: Which option would have the least administrative burden for states, providers, and the Centers for Medicare & Medicaid Services?