Perverse Incentives of the Medicaid Match

The federal government wants its Medicaid bed scam money back (subscription):
“The Centers for Medicaid and Medicare Services demanded the state return funds it paid last year under a now-disallowed bed tax plan designed to generate $22 million in federal funding.”
We are not going to get sane Medicaid policy until we eliminate the incentive of states to rip off the federal purse via the Medicaid match. That should be priority one for Medicaid reform