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Medicaid Per Capita Cap Has Same Damaging Effects as Block Grant
Medicaid Per Capita Cap Has Same Damaging Effects as Block Grant MARCH 6, 2017 |
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Feature | Block Grant | Per Capita Cap | Impact |
Caps Medicaid funding in order to cut federal spending. |
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Forces states to pay entire cost of unanticipated cost increases. |
*Including when enrollment rises in recessions
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*Including when enrollment rises in recessions
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Makes states vulnerable to deeper cuts in future. |
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By shifting costs to states, leaves states holding the bag and having to make increasingly deep Medicaid cuts. |
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Expands states’ flexibility only to cut program in response to federal funding reductions. |
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Inhibits flexibility and innovation, including efforts to cut costs while improving care. |
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Harm state budgets, providers, economy. |
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Bottom Line: While some have presented a Medicaid per capita cap as a compromise option compared to a block grant, they share virtually all of the same damaging impacts. |
Report
Medicaid Per Capita Cap Would Shift Costs and Risks to States and Harm Millions of Beneficiaries
February 27, 2017
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