Medicaid Cost-Savings Opportunities

February 3, 2011 On February 3, 2011, the federal Department of Health and Human Services (HHS) responded to states seeking guidance on ways to control Medicaid spending. A letter from HHS Secretary Kathleen Sebelius reminded state governors that states have substantial flexibility to design Medicaid benefits, service delivery systems, and payment strategies—all without a Medicaid waiver. HHS is recommending that states reduce benefits to the federal minimum, impose cost-sharing, effectively manage care for high-cost beneficiaries, use more effective purchasing practices for prescription medications, and reduce payment errors. Download the Report . . .