FOR IMMEDIATE RELEASE: CONTACT

29 January 2020

(614) 505-9460

It is expected that the Centers for Medicare and Medicaid Services (CMS) will announce

Thursday its plan to allow states to receive a block grant for the Medicaid program

instead of paying the federal share of Medicaid expenses. Steve Wagner, Executive

Director for UHCAN Ohio, noted “if Ohio pursued a Medicaid block grant it would

increase the fiscal liability for the state and lead to 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.”

Currently, Ohio shares the cost of Medicaid with the federal government.

The federal funding is guaranteed to cover a set percent of costs, but in return, states

must cover certain services and people — for instance, children, pregnant women who

meet income criteria and parents with dependent children.

Under a block grant Ohio would get a lump sum from the federal government and then

manage Medicaid any way officials chose. Since most Medicaid dollars go to covering

those with disabilities, older adults in nursing homes, and children; increases in health

costs or number of enrollees eligible would threaten their coverage and care.

Block granting allows the federal government to cut Medicaid payments it makes to

states each year. If the economy hits a recession and more people need help with

health care, Ohio wouldn’t necessarily get more money to compensate for the increased

enrollment. Steve Wagner, Executive Director for UHCAN Ohio, noted, “It is a bad move

to take on all the liability for changes in costs the state can’t control. 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.”

UHCAN Ohio is a statewide non-partisan, non-profit organization building the voice of

consumers to achieve quality, affordable, accessible health coverage for all Ohioans.

www.uhcanohio.org