Hospital exam room, Medicaid, Medicaid audit, Missouri Medicaid program, Missouri Budget, OBBB

Checking Medicaid’s Pulse

Health Care |
By Scott Tanner | Read Time 3 minutes minutes

Are dead people on Missouri’s Medicaid program? Shockingly, the answer appears to be yes. Last month, the Missouri State Auditor’s Office released a scathing audit of the state’s Medicaid program. One of the most notable findings is that the state lacks a working system to check the program’s enrollment against death records. In other words, we don’t know whether we’re paying for dead people’s health coverage. (If we don’t know, then the answer is almost surely yes.)

Unfortunately, that shocking finding is only one piece of the bad news included in the report. The same audit also revealed that thousands of people have remained enrolled on Missouri’s Medicaid program for up to ten years without the state checking whether they’re still eligible. Federal law requires annual eligibility reviews, but Missouri’s outdated IT systems somehow blocked the state’s Department of Social Services from checking the information of around 10,000 recipients for up to a decade. To be fair, some of these individuals might still qualify for benefits, but many probably do not. The point is that the state doesn’t know one way or the other.

The issues outlined in the audit are a perfect illustration of the many problems with Missouri’s Medicaid program that I’ve been writing about for years. This is an enormously expensive program that is riddled with waste and relies on outdated computer systems that are only making things worse.

Given Missouri’s budgetary uncertainty, it’s even more important that Medicaid benefits only go to people who are eligible for them. Eligibility reviews aren’t just bureaucratic hurdles with no purpose. Circumstances that make people eligible to receive welfare benefits change all the time. They find a job. They get married. They might even die. It’s essential that the state’s computer systems know this information as soon as possible to ensure that tax dollars aren’t being misspent.

Perhaps the worst part of the audit report is the recognition that these troubling findings aren’t new problems at all. Previous reports highlighted both the “death match” issue as well as the recipients who weren’t getting their eligibility checked. Some might remember that Medicaid eligibility redeterminations were a hot topic while they were paused during the COVID-19 pandemic, but it’s important to point out that these issues predate 2020, so we can’t just blame the pandemic.

This is another reason why some of the reforms I outlined from the One Big Beautiful Bill are so needed. Modernizing the state’s computer systems and improving eligibility verification so that errors like these don’t happen should be a top priority. Medicaid is far too expensive, and its costs are growing at far too an alarming rate for this level of waste to continue. What’s the point of having eligibility rules if they aren’t going to be enforced?

About the Author

Scott Tanner joined the Show-Me Institute in July of 2013. He earned a B.A. in political science from the College of Wooster. Scott previously worked for the Mitt Romney campaign in Iowa during both the caucuses and the general election of the 2012 cycle. In between, he worked at the Iowa State House for a legislative session. Scott is primarily interested in fiscal and economic policy and considers the Show-Me Institutes mission one of crucial importance. Scott lives in the Central West End neighborhood of Saint Louis City.

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