Summary

GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) new rule on the elimination of reimbursement under Medicaid for school administration expenditures and costs related to transportation of school-age children between home and school. GAO found that (1) the new rule eliminates the federal Medicaid payment for the costs of certain school-based administrative and transportation activities because the Secretary of Health and Human Services has found that these activities are not necessary for the proper and efficient administration of the Medicaid state plan and are not within the definition of the optional transportation benefit; and (2) CMS complied with applicable requirements in promulgating the rule.