Summary

GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services' (CMS) new rule on state flexibility for Medicaid benefit packages. GAO found that (1) The final rule implements provisions of section 6044 of the Deficit Reduction Act of 2005 (Pub. L No. 109 - 171, 120 Stat. 4, 88 (Feb. 8, 2006)), which amends the Social Security Act by adding a new section 1937 related to the coverage of medical assistance under approved state plans, and provides states increased flexibility under an approved state plan to define the scope of covered medical assistance by offering coverage of benchmark or benchmark-equivalent benefit packages to certain Medicaid recipients; and (2) CMS complied with the applicable requirements in promulgating the rule.