How Proposed Spending Caps To Medicaid Are Calculated

Fox Business

By: Jo Craven McGinty

The fiscal 2018 budget, released last week, was short on details but endorses a bill passed last month by the U.S. House of Representatives that would restrict Medicaid spending for the first time since the program started in 1965.

“That’s serious capital coming into a state treasury,” said Andy Schneider, a national Medicaid expert who works for the Center for Children and Families at Georgetown University.

With the per-capita cap, the federal government’s contribution would still be determined by this formula, but only up to a certain amount. If the cap “is $100 in a 50% state, you get 50% of Medicaid spending up to $100,” Mr. Schneider said.

“You get almost total flexibility as to who you cover, what services you provide, and what you pay providers,” Mr. Schneider said.

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