Trump officials consider allowing Medicaid block grants for states

BY PETER SULLIVAN - 01/11/19 04:17 PM EST

The Trump administration is considering moving forward with a major conservative change to Medicaid by allowing states to get block grants for the program, sources say.

Capping the amount of money that the federal government spends on the health insurance program for the poor through a block grant has long been a conservative goal. It was a controversial part of the ObamaCare repeal debate in 2017, with much of the public rallying against cuts to Medicaid.

After the failure of that repeal effort, the Trump administration is now considering issuing guidance to states encouraging them to apply for caps on federal Medicaid spending in exchange for additional flexibility on how they run the program, according to people familiar with the discussions.

The administration’s discussions on the issue were first reported by Politico on Friday.

Any move toward allowing Medicaid block grants for states is sure to provoke an outcry from congressional Democrats, who now have the power to conduct additional oversight with their majority in the House.

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https://thehill.com/policy/healthcare/424988-trump-officials-consider-allowing-medicaid-block-grants-for-states