Medicaid Block Grants Could Save $150 Billion Over Five Years

Doling out Medicaid money to states in the form of block grants could save taxpayers about $150 billion over five years, according to a study by the consulting company Avalere Health. The issuance of block grants is one approach Republicans are considering to make Medicaid more efficient; the other being imposing per capita caps. The per capita caps would save about $110 billion over five years, Avalere says.


Medicaid block grants would issue states a fixed amount of money from the federal government; whereas, a per capita cap entails a fixed amount of funding per beneficiary. 


Dan Mendelson, president of Avalere, said in a press release that, “Medicaid block grants and per capita caps serve as vehicles to control federal spending on the program and put more of the decision-making on things like covered services and program eligibility in the hands of the states.”


Source: Morning Consult