The major overhaul of Medicaid House Republicans passed with their bill to repeal Obamacare earlier this month would cut $43 billion in Medicaid funding for non-disabled children over 10 years, a study by the consultant firm Avalere found. The study also broke down the cuts by states, finding that Texas, Florida and New York would be the biggest losers in Medicaid funding for children’s health care coverage.
The House GOP bill, the American Health Care Act, transforms the traditional Medicaid program from an unlimited match rate to what is known as a per capita cap, meaning the feds would set a limit on the funding offered to states on a per enrollee basis. Because the metric Republicans use to raise the caps over time is slower than the inflation rate of Medicaid, the cuts to the program would grow bigger over time.
The Congressional Budget Office estimated that the original version of the legislation would cut $880 billion from the program over the next decade.
The GOP Senate is in the process of writing its own bill to dismantle the Affordable Care Act that they said will include an overhaul of Medicaid. So far, they have signaled that they will embrace the House’s per capita cap’s approach, but are tinkering with the nuts and bolts of how the caps would work.