There is still one ACA repeal bill being discussed by some Republicans in Congress called the Graham-Cassidy bill. This bill would block grants and make huge cuts to the Medicaid expansion and marketplace subsidies. It will also turn control of the healthcare market over to the state. Instead of funding Medicaid and subsidies, the federal government would put it into a block grant that the state could use.
Why are Block Grants A Bad Idea for Medicaid?
A “block grant” is a fixed amount of money that the federal government gives to a state for a specific purpose. If Medicaid was turned into a block grant, the federal government would set its Medicaid spending amount in advance. That amount would presumably be based on some estimate of state Medicaid costs, but most block grant proposals start with significant reductions in Medicaid support.
Once the amount is set by the federal government. It will not change, even if a state’s actual program costs are greater than the allotted amount. If a state's costs exceed the amount of the block grant it will, most likely, have to use its own funds to make up the differences of cut services for low-income residents, including children, seniors and people with disabilities.
Medicaid Block Grants Would Make it Harder for States to Serve Their Residents
The federal government has been a reliable partner for state Medicaid programs since Medicaid was created in 1965. The federal match rate for the traditional Medicaid program is always at least half of all Medicaid costs, and for the Medicaid expansion population, it is much higher. This structure insulates states from unexpected cost increases and ensures coverage for low-income residents especially including people with disabilities.
The current federal Medicaid funding structure also helps states provide better health insurance to their residence that they cannot do it on their own. These services include waiver services that help provide individuals with disability crucial day and residential supports. These services would be at a great risk under the Graham-Cassidy bill.
In short, it would be devastating to people with disabilities and their families and threaten access to community living. It is crucial that you call your Members of Congress Now and tell them to.
- Oppose cuts to Medicaid. Any cuts to Medicaid threaten the lives of people with disabilities.
- Oppose the Graham-Cassidy bill