Transferring Medicaid Costs From the Federal Government to the State
There is constant pressure from the Federal government to cut Medicaid costs.
One drastic solution is to push Medicaid costs from the Federal government to the State.
Instead of being treated as an entitlement program (i.e. if you are eligible then you will be covered), the block grant system will change Medicaid (i.e. Medical Assistance in Maryland) to a program that is funded if the state can afford it.
The bottom line is that less funds would be available for each state, Maryland included, which would mean potentially drastic cuts for Medical Assistance and likely large scale changes to determine who is eligible (i.e. based on stricter criteria). It will also likely mean that even if a person qualifies, there may not be coverage because there are not enough funds to pay for coverage. At this point in time, there is great uncertainty as to exactly what changes will occur. But, there is no question that change is going to occur and that change will mean different more stringent criteria and likely denial of benefits because there are no remaining funds to pay for said services.
As there are new developments and clarity on the issue, I will place additional updates.