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Improving the Transparency of Medicaid and CHIP Financing

Chapter 1 focuses on improving the transparency of financing the non-federal share of Medicaid and the State Children’s Health Insurance Program (CHIP). In the Commission’s view, the primary goal of improving financing transparency in these two programs is to better understand how much providers are paid today under currently permissible financing mechanisms. Identifying payment amounts is the first component of MACPAC’s provider payment framework for assessing whether payments are consistent with the statutory goals of efficiency, economy, quality, and access.

The Commission makes two recommendations to require states to collect and publicly report information on the sources of non-federal share of Medicaid spending, including financing methods, state-level financing amounts, and provider-level financing amounts.MACPAC_June-2024-Chapter-1-Improving-the-Transparency-of-Medicaid-and-CHIP-Financing