President Trump to begin allowing states to control Medicaid spending under federal guidance – By OAN Newsroom (OANN) / Jan 20 2020
The Trump administration is making plans to possibly change the way Medicaid is funded. According to a Wall Street Journal report, President Trump is expected to release guidance that would make it easier for states to apply for block grants in the coming weeks.
The way these block grants work is that each state that applies for the program would receive a capped chunk of federal money to spend on Medicaid, however they choose. If a state spends less than what is given, they are able to keep that money for themselves.
Thus, the measure motivates state governments to make cuts on Medicaid as well as relinquish the federal government’s requirement to match what states spend on the issue. Many local lawmakers have reportedly praised the new tactic as financially responsible.
“We don’t need to put welfare in the Constitution to meet the needs of the most vulnerable,” said Jonathan Small, member of the Oklahoma Council of Public Affairs. “It will cost $374 million in state taxpayer dollars, to cover 628,000 able bodied adults.”
Conservatives argue another perk is that Medicaid block grants are more efficient at the end of the day.
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