Vice President for Health Policy
The majority of the $1.4 trillion in Medicaid cuts over the next ten years in House Budget Committee Chairman Paul Ryan’s budget would come from converting the program into a block grant. The non-partisan Congressional Budget Office (CBO) issued an analysis yesterday finding that block-granting Medicaid would shift costs to states, beneficiaries, and health care providers — just as we have argued. Among CBO’s key findings:
Starting in 2013, the Ryan plan would cap federal Medicaid funding and adjust the block grant amount each year only by general population growth and inflation — less than half of the increase now projected for Medicaid to account for factors like rising health care costs and an aging population. The cuts would grow each year, relative to what states would receive under current law, totaling $771 billion over the next ten years.
CBO’s analysis confirms that these cuts would likely force states to scale back their Medicaid programs considerably. Low-income children, seniors, and people with disabilities make up the bulk of Medicaid beneficiaries, so they’d be hit the hardest.