Georgia Medicaid Spends Majority of Funds on Administration Over Care

A federal report from the U.S. Government Accountability Office reveals that Georgia's Pathways to Coverage Medicaid program has spent significantly more on administrative costs than on actual healthcare services, with nearly two-thirds of funds allocated to overhead and contractor payments for eligibility and enrollment system overhauls. The program, which requires able-bodied adults to prove 80 hours of work, education, or community service monthly to qualify, has struggled with lower-than-expected enrollment and high administrative spending partly due to delays and legal challenges involving the Biden administration. Georgia's Republican Governor Brian Kemp attributes these delays and increased costs to federal roadblocks, while Democratic Senators Raphael Warnock and Jon Ossoff criticize the program for effectively barring working individuals from coverage and enriching consultants. The report indicates that nearly $40 million of the $54 million spent since 2021 was covered by federal funds, with some spending on marketing funded at a higher federal match than usual. This scrutiny comes as a federal law signed by President Donald Trump mandates similar Medicaid work requirements nationwide starting in 2027, raising concerns about increased administrative burdens and potential coverage loss for millions. Critics argue that the cumbersome documentation process will make it difficult for eligible people to maintain coverage, echoing the issues observed in Georgia's program.