Stitt considers Medicaid block grant for Oklahoma
"The solution for
A Medicaid block grant, which would require approval from the federal government, would completely overhaul how
Stitt talked broadly about health care when a KOKC host asked Stitt to respond to the latest news on the effort to put Medicaid expansion on the ballot next year.
The governor criticized proposed State Question 802 for seeking to put Medicaid expansion in
"Do we want more federal dollars in our system? Absolutely, and I'm going to show Oklahomans a plan to get there," he said.
Up until this point, Stitt has been largely quiet on the details of his health care plan. The somewhat vague reference to block grants serves as the first glimpse at his proposal.
The governor's office declined to elaborate on Stitt's comments.
Despite saying very little, Stitt's revelation speaks volumes about what he sees as the future of health care in
What is a block grant?
A block grant -- one of several types of grants the federal government offers to states -- is a lump sum of money for a state to spend on a broad issue.
In this specific instance, the funds would go toward providing health care coverage to low-income residents.
The amount of funding
How do block grants differ from how Medicaid is traditionally funded?
Medicaid is an entitlement program, which means everyone who qualifies is guaranteed coverage
The program is jointly funded by the federal government and the states. As of September, 791,203 Oklahomans were covered by the state's Medicaid program, dubbed SoonerCare.
The federal government reimburses each state for a share of its Medicaid costs based on the federal medical assistance percentage rate, which varies by state. Poorer states pay less.
The federal government currently reimburses
Block grants have long been a popular concept among
Early on in his presidential tenure, Trump proposed a Medicaid block grant system as part of his plan to replace the Affordable Care Act. An adviser to Trump said Medicaid block grants would "cut out the fraud, waste and abuse" to get help directly to people in need.
Conservatives say Medicaid block grants allow states more flexibility in how they operate their Medicaid programs. Concerned about rising health care costs, they also see it as a way to reduce Medicaid costs at the state and federal levels.
In his interview, Stitt hinted his office has been in communication with the Trump administration about his block grant proposal.
The federal government currently pays the state about
Under the proposal,
The state's block grant proposal would apply to its current Medicaid population as the
Other states, including
Just as opponents of Medicaid work requirements have sued in numerous states to block Trump administration changes to Medicaid, states' block grant proposals could wind up in court.
Critics of Medicaid block grants say they will reduce the amount of funding states receive, leading to fewer people receiving Medicaid coverage.
Because under a block grant system, a state would receive a lump sum of money, the system doesn't as easily take into account how many people qualify for Medicaid.
Take, for example, during an economic downturn. As economic conditions worsen, more people tend to qualify for Medicaid benefits as they lose their jobs or struggle with lower incomes. A block-grant system wouldn't necessarily take those factors into account.
But measures could be put in place to make a block grant more reflexive of changing economic times. The
Is there an alternative proposal?
Stitt is poised to unveil his health care plan at a time when efforts to expand Medicaid to roughly 200,000 more low-income adults are ramping up.
Supporters of Medicaid expansion turned in a record number of signatures to put a state question on the ballot next year. All that's left is waiting to see if the measure qualifies and when it might come up for a vote, which Stitt will get to decide.
State Question 802 would expand Medicaid to all adults whose income does not exceed 133% of the poverty level, or up to
Yes on 802 campaign manager
"At this time it's not clear exactly what the governor is going to propose, but I'm not sure it matters in the eyes of voters," she said. "They simply don't trust politicians to actually fix the problem. That's why they overwhelmingly signed the petition to put Medicaid expansion on the ballot so they can decide this issue for themselves."
It is unclear if Stitt's Medicaid block grant proposal would seek to expand Medicaid to cover more working-class adults.
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