Let States Manage Medicaid Funds

Current Status: Waiting

As of

As part of the Repeal and Replace Obamacare Act:

"Maximize flexibility for states via block grants so that local leaders can design innovative Medicaid programs that will better serve their low-income citizens."

"Block-grant Medicaid to the states. Nearly every state already offers benefits beyond what is required in the current Medicaid structure. The state governments know their people best and can manage the administration of Medicaid far better without federal overhead. States will have the incentives to seek out and eliminate fraud, waste and abuse to preserve our precious resources."

Although not part of any legislation proposed by Trump himself, the health care plan introduced in the House in March 2017 provided for the transition to a “per capita allotment” for states to manage Medicaid funds. The Congressional Budget Office released an analysis of the Republican plan that estimated that it would cut $880 billion in federal funds from Medicaid over the next 10 years, causing 14 million fewer people would have Medicaid coverage in 2026.  Trump expressed his support of this plan, but the act was pulled in Congress on March 24th 2017 during a contentious week of negotiations that failed to gain enough support to pass.

 

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