/White House Announces Medicaid Funding Overhaul

White House Announces Medicaid Funding Overhaul

A new program from the Trump administration will allow states to cap a portion of Medicaid spending by reappropriating part of it into block grants.

Per The Hill:

A letter to state Medicaid directors outlines how states can undertake the drastic, controversial change that conservatives have eyed for years.

The move is likely to kick off a furious legal fight. Democrats have been arguing the administration doesn’t have the authority to approve such drastic changes, and Medicaid advocates argue the changes would hurt low-income people and invite states to cut costs and reduce coverage.

The program — branded as the “Healthy Adult Opportunity” — will allow states to ask permission to end their traditional, open-ended Medicaid program and put hard caps on how much money states and the federal government will spend on the poor and disabled.

Centers for Medicare and Medicaid Services Administrator Seema Verma has made state flexibility a priority during her tenure running the agency. During a call with reporters, she said states have been asking for the ability to be more innovative.

Roughly 71 million Americans receive health care through Medicaid. Beneficiaries have access to whatever care deemed necessary for as long as needed.