GAO urges scrutiny of Medicaid managed-care organizations

The U.S. comptroller general on Tuesday urged a Senate panel to tighten oversight of Medicaid providers and managed-care plans, and criticized the Obama administration’s lax auditing of Medicaid insurers as millions joined the rolls through expansion.

Comptroller General Gene Dodaro and CMS Administrator Seema Verma urged lawmakers on the Senate Homeland Security and Governmental Affairs Committee to look at managed care in expansion states, particularly when they cover large swaths of the Medicaid population. Improper Medicaid payments soared to an estimated $37 billion in fiscal 2017, and Dodaro argued that the federal government needs to join forces with state auditors to combat the issue.

“No one is auditing managed care right now,” Dodaro said. “This could be a game...