Summary

GAO reviewed the Health Care Financing Administration's (HCFA) new rule on Medicaid Managed Care. GAO noted that (1) the rule would implement provisions of the Balanced Budget Act of 1997 that, among other changes, allow states greater flexibility by permitting them to amend their state plan to require certain categories of Medicaid beneficiaries to enroll in managed care entities without obtaining waivers, if beneficiary choice is provided, and (2) HCFA complied with applicable requirements in promulgating the rule.