Study: GOP Medicaid plan could save more than $100 billion

Transforming Medicaid into a block grant or per capita cap program could save the federal government more than $100 billion over five years, a new study found.

The research from the healthcare firm Avalere Health was released as the GOP-controlled Congress eyes overhauling Medicaid as part of a replacement to Obamacare. However, critics say that the move could shift more costs to the state.

Several replacement plans for the Affordable Care Act have advocated replacing Medicaid with a block grant program in which states would get a fixed amount of federal money for Medicaid, or a per capita cap that provides a fixed amount of funding per beneficiary.

Both reforms would replace the current system which has the federal government pay a percentage of the states' total spending on Medicaid. The Affordable Care Act gave states the option of expanding the program, and 31 states and the District of Columbia chose to expand it.
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