Trump aide says ACA replacement plan includes converting Medicaid to block grants: 5 things to know

President Donald Trump wants to give states more control over Medicaid by converting the program to block grants, Kellyanne Conway, a top advisor to the president, said during an interview broadcast on the NBC program "Sunday Today," reports The New York Times.

Here are five things to know about Ms. Conway's remarks and Mr. Trump's plan.

1. Ms. Conway said President Trump will propose providing a fixed amount of federal money to each state in the form of a block grant to provide healthcare to low-income people on Medicaid, according to the article.

2. Ms. Conway voiced support for the idea, saying converting Medicaid to a block grant would ensure "those who are closest to the people in need will be administering" Medicaid, reports The New York Times.

3. Medicaid has long been an open-ended entitlement, where states receive more federal money if more people become eligible because of a recession, or if costs go up due to the use of expensive new medicines, according to the article. If Congress does create block grants for Medicaid, lawmakers will have to address a number of issues, such as how much federal funding each state will receive and whether states will be required to cover certain populations and services, among other things, according to The New York Times.

4. Mr. Trump's plan to convert Medicaid to block grants comes as the president and congressional Republicans continue efforts to repeal and replace the ACA. On Friday, President Trump signed his first executive order to "ease the burden" of the ACA.

5. Overall, governors support the idea of their states having more control over Medicaid, but fear federal officials may use block grants as a vehicle for federal budget cuts, according to the report.  

For more on this story, read Robert Pear's full report in The New York Times.


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