State Auditor Releases Medicaid Status Report

State Auditor Mary Taylor has released a Medicaid status report that found that over $300 million in potential savings in the Ohio Medicaid program have not been acted upon since 2006. Governor Strickland responded to the report by stating that his administration had cut costs in the entitlement by more than $1.7 billion over the last two years. The auditor’s conclusions were based on an update of the 2006 Medicaid performance audit conducted by her predecessor. The original review of the $12 billion-plus annual program was mandated under legislation Ms. Taylor sponsored in 2005 while a member of the House. The audit update showed that only 15 of 109 recommendations from the state auditor’s office have been implemented. While administrators and the legislature made improvements estimated to save more than $100 million under the recommendations, there has been a failure to fully pursue other initiatives that could have cut an additional $300 million in costs. Ms. Taylor noted that Ohio could save $156 million through a reorganization, $128 million by increasing the generic drug dispensing rate from 60% to 67%, and $60 million a year with an “e-prescribing” program.

To view the performance audit report go to:
http://www.auditor.state.oh.us/AuditSearch/Reports/2008/Ohio_Medicaid_Program_Follow_Up_08_Performance-Franklin.pdf