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Long-Term Care Insurance: Proposals to Link Private Insurance and Medicaid Need Close Scrutiny

HRD-90-154 Published: Sep 10, 1990. Publicly Released: Sep 17, 1990.
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Highlights

Pursuant to a congressional request, GAO provided information on eight proposed state demonstration projects, funded by a foundation's planning grants, using private insurance in conjunction with such public programs as Medicaid to finance long-term health care costs.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If Congress wishes to give the Department of Health and Human Services (HHS) authority to approve demonstration projects such as those proposed by the Robert Wood Johnson Foundation grantee states, it should consider including in the legislation requirements to minimize the financial risks to the Medicaid program and to consumers.
Closed – Not Implemented
Rep. Waxman added language to the House Reconciliation Bill that would have given HHS authority to grant Medicaid waivers to states participating in a Robert Wood Johnson Foundation demonstration project. That language, however, included requirements that would minimize financial risks to Medicaid and consumers. The states found the language too restrictive and asked that it be removed.
If Congress wishes to give HHS authority to approve demonstration projects such as those proposed by the Robert Wood Johnson Foundation grantee states, it should consider including in the legislation requirements that the Secretary of Health and Human Services prepare interim reports to the authorizing committees on whether the statutory requirements are meeting their intended purposes.
Closed – Not Implemented
Rep. Waxman added language to the House Reconciliation Bill that would have given HHS authority to grant Medicaid waivers to states participating in a Robert Wood Johnson Foundation demonstration project. That language, however, included requirements that would minimize financial risks to Medicaid and consumers. The states found the language too restrictive and asked that it be removed.

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Topics

Cooperative agreementsCost analysisElderly personsEligibility criteriaHealth care cost controlHealth insuranceInsurance regulationLong-term careState programsMedicaid