Source: Health Policy Institute of Ohio
The Trump administration will allow states to cap Medicaid spending for many adults with lower incomes, a major shift long sought by conservatives that gives states the option of reducing health benefits for millions who gained coverage through the program under the Affordable Care Act (Source: “Trump Administration Unveils a Major Shift in Medicaid,” New York Times, January 30, 2020).
Seema Verma, the administrator of the Centers for Medicare and Medicaid Services (CMS), said states that sought the arrangement — an approach often referred to as block grants — would have broad flexibility to design coverage for the affected group under Medicaid.
The CMS announcement comes as the agency’s efforts to let states require adults on Medicaid to work or train for a job — which led to 17,000 people in Arkansas losing coverage in 2018 — are mired in court battles.
“Government has a solemn responsibility to provide for the most vulnerable among us,” Ms. Verma said in a morning call with reporters. “Part and parcel of that responsibility is making sure the Medicaid program is sustainable.”
The American Academy of Family Physicians expressed concern with the plan suggesting that moving to a block grant system will limit the ability of Medicaid patients to receive preventive and needed medical care from their family physicians, increase health disparities, worsen overall health outcomes, and ultimately, increase costs.