Medicaid, which covers health-care costs for low-income Americans and certain other health-spending categories, is currently a joint federal-state responsibility. The Ryan budget would turn the federal government鈥檚 fiscal participation from an open-ended commitment into a defined block grant of cash.
These state-by-state block grants would be indexed to population growth and inflation. The change would save $810 billion over 10 years, under Ryan鈥檚 estimates.
According to Ryan, this move is necessary to save the program. 鈥淎bsent reform, Medicaid will not be able to deliver on its promise to provide a sturdy health-care safety net for society鈥檚 most vulnerable,鈥� reads
Critics say Ryan鈥檚 path to reform would heavily damage the program. They point to CBO鈥檚 conclusion that cuts in federal Medicaid funding 鈥渨ould probably require states to reduce payments to providers, curtail eligibility for Medicaid, provide less extensive coverage to beneficiaries, or pay more themselves."
