The auditing arm of Congress is urging the government to revamp the way Medicaid money is distributed, suggesting officials target funds based on the demand, geography and resources in each state.
Currently, Medicaid distributes $300 billion annually to the states to help pay the medical needs of the poor and disabled under a formula known as the Federal Medical Assistance Percentage, or FMAP. Payments are essentially based on each state's per capita income (PCI).