What are Medicaid Block Grants?

February 11, 2020

The Trump Administration has proposed that states receive a Medicaid block grant. This means the federal government will provide a specific amount of funding to states and allow state governments to decide how to use that funding to deliver healthcare to citizens.

Why does it matter?

States that opt in to the block grant program could rewrite the rules of their Medicaid program, and could:

  • Choose not to cover certain prescription drugs
  • Increase the amount of certain copays
  • Limit the number of in-network healthcare providers
  • Eliminate the benefit of nonemergency medical transportation
  • Eliminate certain diagnostic and treatment services

Medicaid is a federal program that covers approximately 20% of all Americans, including 6 million New Yorkers. The effect – especially for millions of vulnerable, low-income Americans – could be life-threatening changes in their healthcare coverage and an unsustainable increase in what they have to pay for their healthcare.