Medicaid Under Block Grants: Lessons From Welfare Reform

7/7/2017 - Professor of Economics Marianne Bitler at Health Affairs.

Both proposed versions of the Republican health care bill—the American Health Care Act (AHCA) and the Better Care Reconciliation Act (BCRA)–create an option for states to receive Medicaid funds in the form of a block grant (in the BCRA, the Medicaid Flexibility Program). The lessons from welfare reform can provide valuable insights into the potential impact of Medicaid block grants: namely, states may have a considerable incentive to pursue block grants, because they pose an attractive opportunity to cut state spending and allocate Medicaid dollars for other uses should the state desire that outcome.

Read the full story at Health Affairs.