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Commentary By Chris Pope

MI Responds: Congressional Republicans’ Attempts to Reduce the Cost of Medicaid

Economics, Health Healthcare

Ahead of a likely budget hearing on Thursday, Chris Pope, Manhattan Institute fellow, responds to congressional Republicans’ attempts to reduce the cost of Medicaid:

Medicaid has been the fastest-growing federal program over the past decade, which has made it the focus of congressional Republicans attempts to rein in spending. A recent Manhattan Institute report has set out a path to avoid the political landmines which blew up previous attempted reforms of the program.

Medicaid is supposed to be a healthcare benefit for the poorest Americans, but it is also a system of federal grants which goes disproportionately to the wealthiest states. States are required to provide a core set of benefits to their neediest residents; but may also claim additional federal matching funding to expand benefits and eligibility beyond that group – currently without limit.

By limiting the annual increase in federal matching funds which states can claim to further expand benefits, Medicaid reformers can cut the fat in the program without scraping the bone – potentially generating $600 billion in savings for taxpayers over 10 years, without disrupting existing benefits. 

Chris Pope is a senior fellow at the Manhattan Institute. For more on this topic, check out his piece in the Washington Examiner "How can Republicans reform Medicaid?"

To book an interview with him, please reach out to Leah Thomas at lthomas@manhattan.institute.

Photo by Andrey Denisyuk/Getty Images