Trump Administration Looks At Medicaid Block Grants - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Top Stories
Top Stories RSS Get our newsletter
Order Prints
January 27, 2020 Top Stories
Share
Share
Post
Email

Trump Administration Looks At Medicaid Block Grants

By Wire Reports

The Trump administration is finalizing a block grant plan that targets the Medicaid expansion brought about under the Affordable Care Act, Politico reported today.

The administration wants to let states convert part of their Medicaid funding to block grants, and the Centers for Medicare and Medicaid Services is expected to announce the details of the plan by the end of next week.

The CMS is expected to explain how states could seek waivers to receive defined payments for adults covered by the ACA’s Medicaid expansion.

The action takes place a year after the administration began quietly devising a plan bypassing Congress to give block grants to states for Medicaid. Conservatives have long wanted to cut back spending on the Medicaid program.

Instead of the traditional open-ended entitlement, states would get spending limits for Medicaid, as well as more flexibility to run the health program that serves nearly 75 million low-income people - including children, the disabled and nursing home residents who have run out of personal funds.

Putting a cap on Medicaid spending would be a major change in the way the federal government finances the health care program that has grown to cover about one in five Americans.

Capping spending could mean fewer low-income people getting covered. It also could lead to state-designated cutbacks in health benefits — although those who favor the block grants argue that states would be able to spend the money smarter if fewer federal strings were attached.

The administration wants to let states use waivers to reshape their Medicaid programs, but the effort could face legal challenges in the courts. Waivers approved by the Trump administration to allow the first-ever Medicaid work requirements for some enrollees, for example, are already being challenged in at least two states.

In recent years, governors have complained about the rising costs of Medicaid, which is eating up a bigger share of state budgets. States jointly finance the program with the federal government, which on average covers 60% of the cost – although the federal government typically pays for a higher percentage in poorer states. The federal government covers a much higher share of the cost for Medicaid enrollees covered by the expansion under the ACA.

Republicans have long favored defined funding for Medicaid, instead of the current open-ended structure in which the federal government matches state spending. Democrats, along with many hospital and physician groups, have opposed strict funding constraints on Medicare, fearing they would result in cuts to enrollment and health care services.

Congress has not been supportive of capping Medicaid spending. During the failed ACA replacement effort in 2017, lawmakers rejected a similar plan to cap spending on Medicaid expansion and private health insurance subsidies, which would have resulted in millions of people losing coverage.

The Trump administration wants to bypass congressional opposition by using existing Medicaid authority to test states' health care ideas under what's known as demonstration waivers.

Several Republican-led states are pushing plans to convert their Medicaid programs into block-grant funding. Tennessee, which has not expanded Medicaid, submitted a block grant plan to the administration in November, becoming the first state to do so.  That plan remains under review.

 

Wire Reports

Older

Trump, On Twitter, Pledges To ‘Save’ Social Security

Newer

Understanding The New Risk Ecosystem

Advisor News

  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • Open enrollment is now for 2027 health insurance coverage in Illinois: What to know
  • Idaho insurance director details $13M school trust collapse
  • Insurance program's collapse detailed at ISBA conference
  • Boeing retirees ‘shocked’ by 400% jump in health insurance premiums
  • MEDICAID PAYMENT TRANSPARENCY RULES: STATE REPORTING REQUIREMENTS AND LIMITATIONS
More Health/Employee Benefits News

Life Insurance News

  • Best’s Market Segment Report: Health and Property Lines of Business Drive Hong Kong’s Non-Life Insurance Growth
  • AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and Its Subsidiary
  • National Life Group Approves $23 Million Dividends for 2027
  • Milliman’s proposed $15.5 million settlement puts life insurance underwriting data in focus
  • Brighthouse Financial Announces Third Quarter 2026 Results
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.