The Medicaid block grant proposal in the budget plan proposed by House Budget Committee Chairman Paul Ryan, which the House of Representatives passed on March 21, 2013 would cut federal Medicaid funding by 31% by 2023.
The funding would no longer keep pace with health care costs or with expected Medicaid enrollment growth as the population ages. These cuts would come on top of repealing the health reform law’s Medicaid expansion.
Cuts of this magnitude would substantially — and negatively — affect millions of low-income Americans’ ability to secure health coverage and access needed health-care services.
The Urban Institute estimated that last year’s block grant proposal would lead states to drop between 14.3 million and 20.5 million people from Medicaid by 2022 (in addition to the up to 17 million people who could no longer gain coverage because of the repeal of the health reform law’s Medicaid expansion, assuming that all states take up the expansion). This year’s proposal likely would result in cuts that would be just as draconian.