Experts assess Trump’s 7-point healthcare plan
6. Block grant Medicaid to the states.
The idea here is that local and state governments could manage their Medicaid programs (and reduce waste) far better without federal intervention.
“States should be concerned that this is just a liability dump,” Johnson says. “The better answer would be give states the choice, and reward the states that were the most efficient.”
Current federal-state Medicaid program is a grant to the states, explains Hoagland. “The federal grant allows states to cover people earning less than 133% of poverty; traditional federal matching rates range from 50% to 70% depending on the state,” he says. “Total expenditures vary depending on the number of qualified recipients in a state and the matching rate. It is unclear from the Trump proposal what the block grant would be to the State from the Federal Government and if this grant would change depending on the number of eligible individuals or the cost of healthcare in the state.”
Mack believes that providing block grant Medicaid funding to states would likely increase the number of uninsured and decrease benefits because states offer widely varying access and benefits to their residents
“Women’s services will likely decrease, especially in states that have enacted laws limiting family planning and abortion services,” he says.