(Bloomberg Business) — The federal government isn't doing enough to keep states from misusing Obamacare money, according to a watchdog agency's warning.

Washington has awarded more than $5 billion in grants since 2011 to help states establish insurance marketplaces under the Patient Protection and Affordable Care Act. The law mandated that those marketplaces find ways to fund themselves by Jan. 1, 2015, and that the grant money can't be used for operations after that point. But the Centers for Medicare and Medicaid Services, which oversees the grants, hasn't done enough to make sure states are following the law.

That's according to a warning letter from the agency's inspector general, Daniel Levinson, who described the situation as "a significant matter" that needs "immediate attention."

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