Medicaid Budgeting Effects
Medicaid is funded both by the federal government and the state government. The federal government pays a certain percentage (FMAP) which is based on the per capita income or the average income per person. Additionally, these percentages are adjusted for each state on a three-year cycle to account for fluctuations in the economy, such as recessions (Medicaid.gov). If Missouri’s Medicaid were to be switched to a block-granting program that would mean that rather than the federal government paying the FMAP the government would provide a set or capped lump-sum, thus “allowing the state to have control of the program” and its distribution (Luthra).
This block-granting can have many affects and quite honestly many of them are highly negative. While …show more content…
Again if there is less money available for the program some things (or rather people) will be cut. Much like a bank account if there’s less money in it then the less you can spend on groceries, gas, or frivolous expenses, meaning you’d have to eliminate certain expenses. But in this case, the cut in funding along with the switch to the block-grant format will, according to, “almost certainly force states to sharply scale back or eliminate Medicaid coverage for millions”(Park). Furthermore, budget cuts would affect individual beneficiaries drastically. For instance, many recipients are elderly, disabled or children (one quarter are elderly or disabled and half are children) according to Families USA. For seniors and the disabled, Medicaid pays for extra services that Medicare can’t such as long term care (Families USA). Obviously cutting funding to Medicaid would limit or even eliminate this and other provisions such as doctor’s appointments and medications. For children access to medical care clearly contributes to their future health. Along with this, if Medicaid is cut for parents this could most likely lead to their children not being covered either as “when parents have health coverage, their children are more likely to have health coverage”(Families USA). Lastly for those who are unemployed (students, stay- at-home moms, etc.) cuts to Medicaid would make it even more difficult to pay for services as these beneficiaries already are not making their own
This block-granting can have many affects and quite honestly many of them are highly negative. While …show more content…
Again if there is less money available for the program some things (or rather people) will be cut. Much like a bank account if there’s less money in it then the less you can spend on groceries, gas, or frivolous expenses, meaning you’d have to eliminate certain expenses. But in this case, the cut in funding along with the switch to the block-grant format will, according to, “almost certainly force states to sharply scale back or eliminate Medicaid coverage for millions”(Park). Furthermore, budget cuts would affect individual beneficiaries drastically. For instance, many recipients are elderly, disabled or children (one quarter are elderly or disabled and half are children) according to Families USA. For seniors and the disabled, Medicaid pays for extra services that Medicare can’t such as long term care (Families USA). Obviously cutting funding to Medicaid would limit or even eliminate this and other provisions such as doctor’s appointments and medications. For children access to medical care clearly contributes to their future health. Along with this, if Medicaid is cut for parents this could most likely lead to their children not being covered either as “when parents have health coverage, their children are more likely to have health coverage”(Families USA). Lastly for those who are unemployed (students, stay- at-home moms, etc.) cuts to Medicaid would make it even more difficult to pay for services as these beneficiaries already are not making their own