Medicaid Block Grants, April 18th, 2011

This week, as part of the Consortium for Citizens with Disabilities (CCD), BIAA participated in an advocacy push to assist Senator Rockefeller in procuring signatures for a letter to President Obama expressing opposition to any proposals to block grant Medicaid or to move towards a global cap on federal health care spending.

As many of you know, House of Representatives Budget Committee Chairman, Paul Ryan released his budget plan early this week which proposes to cut Medicaid by $771 billion over 10 years by block-granting the program. What this means is that instead of a partnership between the federal government and the states to enroll every citizen who meets the program’s guidelines, Ryan’s proposal would require the federal government to give states a lump sum set by a fixed formula and rely on the states to cover who they can.

If enacted, the funding shortfall would cripple already struggling states and force them to choose between increasing taxes, cutting other state programs, or cutting eligibility, benefits, or provider payments.

Although preliminary reports have stated that both the Democratic Senate and President Obama are not supportive of the initiative, BIAA will continue to monitor the situation closely and alert grassroots advocates if action becomes necessary.

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