House Republicans are considering “per capita caps” for Medicaid which would throttle federal funding without technically changing benefits. The key Republicans who support the proposal argue it is not technically a “cut.” Uh huh! Via the Hill:
But the controversial plan would change the nature of the Medicaid program by putting a cap on federal Medicaid payments to states that expanded the program under the Affordable Care Act.
However, GOP leaders say nothing is certain as they debate the best way to offset President Trump’s massive tax cuts.
Moderate and battleground-district Republicans are pushing back on threats to Medicaid, while conservatives and budget hawks are agitating for deeper cuts.
The war, as always, is between Republicans who are terrified of losing their seats, and Republicans who want to be EVEN MEANER TO POOR PEOPLE.
Medicaid is a joint venture between the federal government and states. The federal government pays a fixed share of states’ Medicaid costs without any limit, so the amount reimbursed goes up or down depending on how much a state spends on the program.
For Medicaid expansion states, the government pays 90 percent.
A per-beneficiary cap would fundamentally change Medicaid from an open-ended entitlement to one with strict limits on federal spending. Congress would set a fixed amount per beneficiary for each state to receive, and states would be responsible for all remaining costs.