Governor Rick Scott and Senate President Mike Haridopolos have repeatedly called for Congress to give block grants to states and allow them to run the Medicaid program. They are also pushing for the repeal of last year’s federal overhaul of healthcare.
But a just-released study conducted by the Urban Institute for the Kaiser Commission on Medicaid and the Uninsured finds that, Florida would see a nearly 44 percent reduction in federal Medicaid funding from 2012 to 2021, compared to what would happen under the current law, if Medicaid is converted into a block grant and the health reform law repealed under the House Budget Plan.
The study finds Florida would be particularly hard hit because of its relatively higher federal matching rates. This is because the federal government is currently paying a high share of Medicaid spending. In 2010-2011, the state general revenue comprised only 20 percent of the nearly $20 billion total Florida Medicaid program, or $4 billion. The federal government made up the difference.
Given that repealing the health reform law and a Medicaid block grant program would lead to significant reductions in federal spending on Medicaid, the study indicated Florida would need to cut enrollment by 55 percent, if expenditures were not increased substantially at the state level to offset the loss of federal revenues, and maintain enrollment levels.
It goes without saying, with the recent cuts to state services in the 2011-2012 budget and the current emphasis by Scott on reducing state taxes, there is little chance that Florida’s current Medicaid program would be maintained. And most of those people, given their low incomes and few options for coverage, would no doubt end up uninsured.
Health centers, hospitals, and safety-net facilities that serve low-income and uninsured people and rely heavily on Medicaid revenues would also suffer under the House Budget Plan.
According to the study, by 2021, hospitals could see reduction in Medicaid funding of between 31-38 percent annually, compared with projected funding under the current law. The reductions would come at a time too, when millions more people would lack coverage, increasing the potential demand for uncompensated hospital care.
Yet Scott, Haridopolos and other Republican leaders continue their calls for repealing the health care law and and a block grant Medicaid program for states, including Florida.
Their continued assault on the poor and low-income Floridians must be stopped.
