CLIP — ACHP, other industry stakeholders, troubled by Medicaid block grant proposal

The Alliance of Community Health Plans and other industry stakeholders have expressed concerns about proposed changes to Medicaid that would partial cap federal assistance and allow states to receive block grants for optional Medicaid populations.

CMS issued guidance allowing states to share in cost savings under demonstrations that would cap federal funding for the optional beneficiaries while giving states more leeway. The cap would only apply to low-income adults under the age of 65 that the state isn’t required to cover, but which a state has chosen to cover as part of the demo.

“Using block grants would not allow states to weather pressures on spending at the state level or to adequately account for economic and population changes,” said Cecil Connolly, president and CEO of ACHP.

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