Republicans plan to turn control of Medicaid over to the states as part of their replacement for the Affordable Care Act, according to an adviser to President Donald Trump.
“Those who are closest to the people in need will be administering it,” Conway said in the interview, which was recorded the Thursday and Sunday. “You really cut out the fraud, waste and abuse, and you get the help directly to them.”
Medicaid is now funded by the federal government and states together and it has an open-ended funding stream, meaning it pays for all health costs to which its beneficiaries are entitled under the law.
But many health policy analysts say that block grants could lead to reductions in care. “A Medicaid block grant program would institute deep cuts to federal funding … and threaten benefits for tens of millions of low-income families,” said Edwin Park, vice president for Health Policy at the Center for Budget and Policy Priorities, in a report on the group’s website.