Medicaid Block Grants vs. Per Capita Caps

January 5, 2017

Medicaid is the health insurance safety-net program for lower income Americans. Currently, 64 million people – many of whom are cancer patients and survivors – rely on Medicaid for affordable health care coverage. Proposals to change the way Medicaid is financed are being discussed in Congress, including changing the current payment structure from a federal-state match to either a block grant or per capita cap approach. Both block granting and capping Medicaid reimbursement costs per enrollee raise serious issues about the impact on the program’s ability to deliver affordable health care, particularly for those suffering from serious illnesses such as cancer.