Yesterday,
Representatives Todd Rokita (R-IN), Tim Huelskamp (R-KS), Paul Broun
(R-GA), and Jim Jordan (R-OH) introduced HR 4160, The State Health
Flexibility Act, which would combine a state’s Medicaid and CHIP
programs into a single block grant. The bill originated last year, when
Republican Governors presented Congress with seven principles for
reforming Medicaid. Under this bill, states would also have sole
authority to determine eligibility, benefits, provider reimbursement
rates, and to improve the quality of care and access to vital services.
In addition, the bill would set the federal funding for Medicaid and
CHIP at current levels for the next 10 years, which according to the
bill’s sponsors will save $1.8 trillion compared to current law and the
Affordable Care Act’s expansion. Also, under this bill, Congress would
retain the ability to temporarily or permanently adjust federal funding
levels as needed.
Since
Congress was not successful moving a similar measure past the House
last year, it is expected that the House FY 2013 Budget, which will be
released in the coming weeks, will likely include language to block
grant Medicaid as well. Although the House passed the proposal last
year, the Senate rejected a motion to move to the proposal. The
proposal, a non-negotiable for Democrats, is also a concern for some
Republicans who are looking at alternatives to reforming the Medicaid
program.
CWLA
believes that a Medicaid block grant would be very harmful to current
and potential beneficiaries by limiting access to coverage and services. (Translation-
Harmful to the income of the kidnappers and their contractors) Additionally, while some states have argued that a block grant would
allow them more flexibility to meet the needs of their diverse
constituencies, conversely, block grants also limit the amount of
funding states receive thereby hindering the ability of states to meet
the need (of the parasites) in times of economic hardship, like the most recent recession.
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