Republicans approve of party leaders' plans to have the federal government give states a lump sum for Medicaid in exchange for allowing more flexibility about how the money is spent, according to a Kaiser Family Foundation poll released Wednesday.
Sixty percent of those polled said they supported Republican plans that would "reduce funding to states for Medicaid and reduce financial help for those who buy their own coverage on the Affordable Care Act marketplace (or Obamacare), but give states more flexibility in how to spend the funding and in deciding who to cover and what protections should be in place for consumers." The poll did not evaluate how receptive Democrats or independents were to the idea.
The Trump administration is considering new plans to turn Medicaid into a block grant on a state-by-state basis. Congressional Republicans favor the idea of block grants as a way to control spending. A plan to repeal and replace Obamacare, authored by Republican Sens. Lindsey Graham of South Carolina and Bill Cassidy of Louisiana, would have turned all of Medicaid into a block grant nationwide.
The federal government currently matches a percentage of what states spend on Medicaid every year and pays for the majority of costs. Accordingly, federal officials have a lot of say about how states spend Medicaid dollars. Through a block grant, the amount that the federal government spends would be capped.
Healthcare industry groups have oppose block grants because they said they would result in cuts to Medicaid, which covers low-income people, pregnant women, and people with disabilities. Critics also have warned that states may incur costs that they don't expect, such as the need to spend more on Medicaid on some years to care for people following a natural disaster.
A bill to turn Medicaid into a block grant passed the Tennessee House earlier this month. Alaska Gov. Mike Dunleavy, a Republican, wrote the Trump administration earlier this year to say he would be interested in receiving Medicaid funds as a block grant, but his administration appears to have backed off the idea. Health Commissioner Adam Crum told a legislative committee on Wednesday that block grants were “not our main plan.”
“It was a foot in the door, let us be first on something, we need an Alaska-specific solution,” he said, according to the Daily News-Miner.