How Medicaid Block Grants Would Affect Georgia Seniors

One federal budget proposal currently being promoted by House Republicans led by Paul Ryan calls for converting Mediciad funding to a block grant program.  This will cause another unfunded mandate which will ultimately hurt Georgia's senior citizens as well as our state and local governments.

Currently, the federal government sets the minimum financial eligiblity for Medicaid recipients and remiburses the state according to a formula for all of the healthcare services provided.  If there are more residents who qualify for services, reimbursement increases.  Under a block grant, the federal government would provide each state with a fixed dollar amount.  Becuase the amount of the grants would not change to reflect increased costs, if Mediciad is converted to a block grant program, the states will have less flexibility and more responsiblity for Medicaid costs.  At best, this will turn Medicaid into another unfunded mandate and at worst, it will deny funding for services needed by Georgia seniors who have nowhere else to turn.

According to the Kaiser Commission on Medicaid and the Uninsured, Medicaid is the primary long-term services provider for America's low income older adults.  Ten million Americans currently need these services.  The Administration on Aging projects that the number of adults age 65+ in the population will almost double between now and the year 2030.  The federal reimbursement rate is based partly on per capita income, so states with a poorer elderly population receive a larger percentage than wealthier states.  For this year, the enhanced formula for Georgia was 75.73% while New York, New Jersey and Maryland each received 65%.

Unlike the current system, with a block grant, the federal governement would only provide a fixed amount of funding, regardless of how much the program costs.  In an emergency, or if a state uses up federal funding, it will have to reduce services or increase its own funding.  Given Georgia's current budget concerns, local taxpayers will end up bearing this burden, which they already paid once in their income taxes, for their fellow citizens.

Medicaid's rising costs are a real problem, but block grants will do more harm than good.  There are other solutions being proposed like the savings tools provided in the health reform law, coordinating care for dual eligibles and reducing Mediciad prescription drug costs.

Block grants will not be good for Georgia seniors or Georgia citizens.  Contact your representative and ask them to vote to remove this feature from any budget proposal that comes before them.