Background on why a Medicaid per capita cap/block grant would lead to devastating cuts in Medicaid

November 22, 2016

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The health plan that Speaker Paul Ryan and other House Republican leaders unveiled today would radically restructure Medicaid by forcing states to accept reductions in federal funding for their Medicaid programs through either a "per capita cap" or a block grant, both of which would shrink federal funding for state Medicaid programs over time, relative to current law.  This would shift significant costs to states and almost certainly lead states to cut Medicaid substantially over time, potentially placing millions of low-income Americans at risk of losing part or all of their health coverage...