Mismanaged Medicaid Payments Demonstrate Need for Reform

Proponents of Medicaid expansion seek to add over 300,000 adults to the already broken Medicaid system without any true reforms. Such rash expansion would cost Missouri millions without solving any of the problems that currently plague the program, such as waste, fraud, and improper payments. A recent federal audit found that Missouri should return $21.4 million in Medicaid payments to the federal government because the funds were improperly administered.

Of the $22.7 million given to Hawthorn Children’s Psychiatric Hospital from 2005 to 2009, $21.4 million was called into question because the state-owned hospital failed to provide proof of staffing requirements and lacked proper records for mental health patients. While Missouri can appeal the recommendation, this will only waste more taxpayer money defending the payments.

Adding more cases to the bloated system through expansion will not solve Medicaid’s administrative problems or increase its efficiency. Meaningful reforms are needed to ensure that funds are used properly in the future and to increase the quality of care given to Medicaid recipients.

Currently, three state departments oversee elements of Medicaid, which makes the system very difficult to manage. Moving all elements of Missouri’s Medicaid program to one entity or department would allow for better oversight and more efficient administration.

Simply expanding Medicaid will do nothing to improve the system, which is currently wasting taxpayer money while underserving recipients. If we truly want to provide Missouri’s most vulnerable citizens with better care, we must implement meaningful Medicaid reforms.

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