Pennsylvania Senator Pat Toomey spotlights Medicaid Block Grants to the States as a means to address the unsustainable, upward spiral of Medicaid costs.
Medicaid costs have grown at 7% rate annually for past ten years and it appears will continue to grow at 7% rate for next 10 years. “A capped, no-strings-attached financing mechanism would allow states to rein in Medicaid costs by reducing eligibility levels, customizing benefits and rewarding healthy behaviors. Democrats dislike block grants because they would decentralize health-care decision-making [from Federal Government to States.]
A group of nine Senate Republicans that includes some tea-party-backed lawmakers unveiled a proposal to balance the budget by fiscal 2020 by reducing spending to 18.5 percent of the gross domestic product from the current 24 percent of GDP and turn Medicaid into a block grant program.