State Medicaid's Management Criticized In New Audit

North Carolina Gov. Pat McCrory says he is withholding judgment on whether the state should expand Medicaid under the federal Affordable Care Act until his administration can fix serious mismanagement within the program.

McCrory spoke Thursday as State Auditor Beth Wood released a 70-page critique of the Division of Medical Assistance.

The audit found that administrative spending for the state's Medicaid system is significantly higher than nine states of similar size. The audit also found state Medicaid administrators used flawed or incomplete budget forecasting methods, resulting in shortfalls of more than $190 million last year.

Medicaid provides health coverage for more than 1.5 million North Carolina residents, most of them poor children, older adults and the disabled. The program spends about $13 billion in state and federal funds.


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