Okay folks, I just read in my daily rag that the newly elected Commander-in-Chief is proposing to make Medicaid into a “Block Grant” system instead of the current 'open-ended' operation of the department. Let's see if you know what that means...
Open-ended: this program issues monies and services based upon needs. An individual or state has catastrophic problems [Black Lung-Junta Virus outbreaks-Flu, etc., whatever] then the Fed can allocate more money into the Medicaid program to help cover expenses, especially for the the poor.
Block Grant: Each state will be given a set amount of money [usually based on population] to dole out to their folks in the form of a Block Settlement. If there is an emergency and the state needs more funding...? Well, let's just wait and see.
Imagine you are living in … say … Idaho [small population state] and the winter is especially harsh [as it is right now] and you are on the ACA [Obamacare] roles. Now imagine there is an outbreak of weather-based pneumonia and flu and people are going to the hospital in droves. The State of Idaho has been given a block grant to cover expenses and … oh, oh... it runs out of cash. Now what? Why, you just go to the president of the U.S. Mr. Gracious and Forgiving and say, “hey, we Idahoans...who voted for you in droves, by the way, are out of our block grant money to take care of our people; how 'bout sending us some more?” What do you imagine Mr. Gracious and Forgiving will do? Why he'll just dip into the Treasury and peel off some Hamilton's and viola your troubles are over, right? In your wildest imaginations, do you see that happening? Especially when there are 50 other states with block grants he's worrying about? Dream on people.
What he's likely to say is, “Idaho, I've allocated your funds, now you have to take care of the problem yourself, cause we've got problems in Alabama that take precedence.” That's exactly what's going to happen.