Federal Medicaid Block Grant Offer Draws Interest, Worries

From Gongwer

Critics this week warned that the block granting of Medicaid could lead to more liability for the state and the loss of federal dollars.

“The federal offer of program flexibility is an illusory benefit, CMS is offering not much more than a flexibility to cut coverage and benefits for those who depend on Medicaid to access health care,” Steve Wagner, executive director of UHCAN Ohio, said in a statement.

Mr. Wagner said the cost of Medicaid is currently shared between the state and federal government, with the federal share covering a fixed percentage of costs while states cover certain services and individuals.

“It is a bad move to take on all the liability for changes in costs the state can’t control,” he said. “The federal government would not increase block grant funding if increases in disease (e.g. rising diabetes rates or aging population), new diseases (e.g. WuHan coronavirus), or a new treatment (e.g. curing hepatitis C) increased health care costs for Ohio. UHCAN Ohio is hopeful that Governor DeWine sees Medicaid block grants for the bad deal that they are.”