Johnson seeks to scrutinize ‘Medicaid maximization schemes’

Sen. Ron Johnson, R-Wis., is pushing federal officials for information about what he calls “Medicaid maximization schemes,” in which states attempt to save money by “artificially” leveraging a greater share of federal dollars.

Johnson sent letters last week to Centers for Medicare and Medicaid Services Administrator Seema Verma and Comptroller General Gene Dodaro. Both testified at a Senate hearing held by Johnson last month.

Johnson wrote in his letter to Verma that “popular gimmicks” include transfers of funds between public Medicaid providers and the state’s Medicaid agency to get more federal matching funds.

He cited practices where states tax healthcare providers and return the funds back to them, triggering a federal match. And he also pointed to supplemental payments to healthcare providers that separate from claims-based payments.

“At a time of rising federal deficits and increased federal Medicaid spending, these schemes warrant closer scrutiny,” Johnson wrote in his letter to Dodaro.

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