Following reporting that the Trump administration is planning an attack on Medicaid by seeking key changes in how the program is financed—changes it wants to make without Congressional approval—Democratic lawmakers and healthcare advocates are warning the proposal means healthcare for millions of Americans will be threatened as states will be forced to “make draconian cuts.”
The plan, Politico reported Friday citing “three administration sources,” would involve states being able to opt for block grants instead of receiving open ended funding as they do now, for supposedly “more flexibility to run the low-income health program that serves nearly 75 million Americans, from poor children, to disabled people, to impoverished seniors in nursing homes.”
As for that touted “flexibility,” Hannah Katch, senior policy analyst at the Center on Budget and Policy Priorities, previously laid out in a blog post:
Moreover, as Kelly Allen of the West Virginia Center on Budget and Policy explained in a tweet, “Entitlement programs like SNAP and Medicaid see increased need when the economy worsens or during natural disasters. But with a block grant—sorry—it’s a fixed pie and when the money is gone, it’s gone.” Look also to what happened in 2014 with regards to prescription drug spending to see the impact of block grants, said Edwin Park of Georgetown University Health Policy Institute’ Center for Children & Families:
The Kaiser Family Foundation offered this info graphic to contrast the funding as it currently is with how it would be with block grants:
Politico added:
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