By Rick Banas of Gardant Management Solutions
Republicans in Congress are looking at ways to reform Medicaid.
Their position is that reform is necessary because the recent and projected growth in Medicaid spending is not sustainable.
With Republicans controlling both Congress and the Executive Branch, reform is much more likely.
Two alternatives are being considered:
Block Grants –
With Block Grants, the federal government would provide each state with a lump sum of money for Medicaid. It would be up to the state to determine how to spend the money.
Per Capita Payment –
The federal government would pay the state a fixed amount per Medicaid recipient. The amount would depend on whether the Medicaid recipient was an older adult, an adult with a disability, a child, or an adult in the Medicaid expansion group. The amount per person would be the same no matter how much or how little Medicaid services the individual required.
Medicaid reform, in and of itself, is not necessarily bad. Depending on how it is structured, it could even be helpful.
At the same time, it could be devastating.
From what we understand, the proposals that are being considered could dramatically reduce funding to the states and possibly place Medicaid waiver programs, such as the waiver for assisted living, at risk. These programs save the Medicaid program money by providing older adults and adults with disabilities a more appropriate and a lower cost option.
We encourage you to contact your representative in the United States House of Representatives about this issue.