New Report Estimates Loss to States Under Congressional Medicaid Block Grant Proposal

The Kaiser Family Foundation released a report today that examines the probable impact of the Congressional proposal to make Medicaid a block grant program. The report estimates  federal government spending on Medicaid would fall by $1.4 trillion (34 percent) in the decade between 2012 and 2021.

However, these federal budget savings come at the expense of states. By 2021, states would receive $243 billion less annually in federal Medicaid money than they would under current law, a 44 percent reduction.

The Kaiser report looks at the proposal contained in the federal budget plan released by Representative Paul Ryan. It assumes the repeal of the Affordable Care Act and then projects three scenarios for state responses to the block grant, ranging in decreasing Medicaid enrollment from 31 million people to 44 million people nationally. The full report contains state-by-state data on funding losses and decreased enrollment in Medicaid.

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