Trump administration working on plan for Medicaid block grant program

The Trump administration is considering a plan to transform Medicaid into a block grant program, according to The Hill.

Medicaid has long been an open-ended entitlement. But the Trump administration is considering issuing guidelines allowing states to receive fixed federal block grants for Medicaid spending, according to the report, which cites people familiar with the discussions. In exchange for these grants, states would get more flexibility with Medicaid. They would be able to decide how to spend grant funds and regulate who qualifies for services in the state.

Conservatives have suggested a Medicaid block grant program for years, and the issue was discussed in 2017 amid Republican efforts to repeal the ACA.

According to The Hill, encouraging states to apply for Medicaid block grants is sure to spark pushback from Democrats, and the legality of making such changes without congressional approval would likely be questioned.

Laura Dyrda contributed to this report. 

 

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