Jan 21, 2020

Trump administration plans to issue guidance on Medicaid block grants

CMS Administrator Seema Verma

CMS Administrator Seema Verma. Photo: Steven Ferdman/Getty Images

The Trump administration plans to issue guidance — potentially this month — on state waivers to change Medicaid funding into a block grant, the Wall Street Journal scoops.

The intrigue: This is somewhat surprising, after the Office of Management and Budget indicated in November that the guidance was no longer happening.

Why it matters: Some red states have already expressed interest in block grants, and supporters say they give states more flexibility, but consumer groups argue that they could lead to thousands of low-income people losing health coverage.

Yes, but: Like work requirements and several other pieces of the Trump administration's health agenda, block grants are likely to be challenged in court.

Go deeper: Tennessee block grant plan faces uphill battle

Go deeper