Today, the Centers for Medicare & Medicaid Services (CMS) issued guidance to states on what it would consider if states wanted to implement a Medicaid block grant for their state. Block grants in the Medicaid program would change the formula for how the federal government reimburses states for running their Medicaid program. Currently, the formula allows states to receive reimbursement from the federal government based on the money they spend. Under a block grant, the federal government would simply provide the state with a predetermined amount of money which the states would then be able to use in whatever way they wanted in order to run their Medicaid program. You can review the CMS letter to the states along with the CMS press release and the CMS fact sheet on this new initiative.
AAHD has concerns about this proposal. See our latest blog post for details.