Congress has been discussing various policies to reduce the federal commitment to Medicaid, including implementing a per capita cap and reducing the federal matching funds to states. With children making up close to 50% of total Medicaid and CHIP enrollees (37.5 million children), any reduction in federal Medicaid funding could result in negative consequences for children covered by Medicaid and CHIP.
The Children’s Hospital Association (CHA) commissioned Avalere Health to examine how each policy change could impact children. Results from the report’s analysis show that each policy proposal would be harmful to the Medicaid program nationally and at the state level, shifting costs to states and forcing them to make tough decisions that could negatively impacting access to care for children covered by Medicaid.
CHA opposes Medicaid block grants, per capita caps, reductions in federal matching rates, and other policy proposals that restrict the federal investment in Medicaid and cause children to lose ground. This would include changes to Medicaid financing and payment, including provider taxes, supplemental payments and state directed payments that negatively impact children’s access to needed health care.
