Medicaid is the third-largest program in the federal budget and growing fast. It pays for medical treatment of one in five Americans. Currently the Federal Government “matches” a percentage of State costs for Medicaid treatment, with no limit on the amount spent. Another option would be for each State to receive a set amount (block grant) for Medicaid, instead of matching funds. This option would effectively put Medicaid “on a budget.”
- Should the Medicaid program be “put on a budget?” Why or why not?
- What would be the major challenges in introducing block grants for Medicaid?