Federalization of Medicaid: Health Reform Bill Would Reduce State Authority

Medicaid is designed to be a partnership between the states and the federal government. In the Balanced Budget Act of 1997 and again in the Deficit Reduction Act of 2005, states won additional flexibility to run Medicaid and its companion program, the State Children's Health Insurance Program (...

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Bibliographic Details
Published in:Policy File 2009
Main Author: Smith, Dennis G
Format: Report
Language:English
Subjects:
Government
Health care policy
The Heritage Foundation
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Summary:Medicaid is designed to be a partnership between the states and the federal government. In the Balanced Budget Act of 1997 and again in the Deficit Reduction Act of 2005, states won additional flexibility to run Medicaid and its companion program, the State Children's Health Insurance Program (SCHIP). But under H.R. 3962, the health bill introduced last week by Speaker Pelosi, the ability of states to run their programs to reflect state variations and preferences would be substantially diminished. Policy decisions would be removed from the elected representatives at the state level and placed in the hands of the federal bureaucracy.