Converting Medicaid to a block grant would change the program from a guaranteed benefit for low-income Americans (including children) and people with disabilities and the elderly to an annual lump sum payment made to states. Such grants are not tied to the need for services so if the number of people in need is increased year over year, the block grant would not adjust to meet the rising demand. Medicaid is more than a health insurance program. It is the primary source of funding for a myriad of services for those who qualify. For the disabled and elderly, it is designed to help keep people in their homes and independent. It does so by providing the funding for in-home health services and skilled nursing, as warranted, for the elderly and disabled. The Medicaid program also requires the
federal government to match every dollar spent by the states on Medicaid services. This approach to service provides states with opportunities to invest in programs aimed at broadening the availability of the kinds of services it can provide. With the implementation of block grants for Medicaid, guaranteed matching funds will be lost. This could severely limit the ability of states like California and others to sustain existing services and makes their ability to expand services almost impossible. Since Medicaid’s implementation more than fifty years ago, it has been open-ended. This means for example, if there were more people eligible for Medicaid due to a recession or if costs increase due to expensive new medications, etc. in a given year, the state receives addition federal dollars.
If Medicaid becomes a block grant and the federal government no longer plays a key role in it, there is growing concern the nation’s elderly and disabled will also be at greater risk of not being able to remain in their homes. Thresholds for poverty status are determined and adjusted annually. It is based on income, family size, and age of householder. In 2016, the official poverty level for a family of three was $ 20,160. The California Budget and Policy Center was established in 1995 to provide Californians with a source of expertise on state fiscal and economic policy issues. To learn more about the CBPC and its work, visit calbudgetcenter.org/. Tables & Graph courtesy of calbudgetcenter.org
theievoice.com | FEBRUARY 16, 2017 | VOICE
11