KHI News Service

GOP budget plan would cut federal Medicaid spending in Kansas by 36 percent

Kaiser Commission analyzes consequences of Medicaid block grants coupled with Ryan budget plan

By Mike Shields | October 23, 2012

If policies proposed by GOP presidential candidate Mitt Romney and his running mate, Paul Ryan, were put in place, among the results would be deep cuts in federal Medicaid spending in Kansas and other states, according to a new report from the Kaiser Commission on Medicaid and the Uninsured.

Nationwide, federal Medicaid spending would drop $1.7 trillion between 2013 and 2022, according to the analysis. Of that, $932 billion would come from repealing the Affordable Care Act. The other $810 billion would come from reductions or savings realized by converting Medicaid to a block grant program for states, capping the amount of federal aid each state could receive.


Kaiser analysis

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Kaiser Commission on Medicaid and the Uninsured

A chart showing the projected reductions in federal Medicaid dollars states would face, if GOP presidential candidate Mitt Romney's plans for Medicaid and the Affordable Care Act are adopted.

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The GOP plan to repeal the health reform law and turn Medicaid into a block grant program was drafted by the U.S. House Budget Committee when Ryan was its chairman. It passed the House twice but was stopped in the Democratically controlled Senate.

Romney voiced support for Ryan’s budget plan during the Republican primaries but has sought to distance himself from it since winning the nomination. However, he repeated his support for a similar plan to change Medicaid during the third presidential debate on Monday night, saying that block grants had been successfully tried in Rhode Island and Arizona.

Kansas Gov. Sam Brownback, a Republican, also has championed Medicaid block grants and has asked federal officials to grant one to Kansas as part of a Medicaid waiver application his administration submitted with his plan to put virtually all Kansas Medicaid enrollees into managed care plans run by private insurance companies.

That request is still pending.

Supporters of the GOP Medicaid and budget proposals say they are needed to help cut the federal budget deficit. Critics say they would mean certain cuts in services to Medicaid patients and reduced payments to hospitals and other medical providers.

The Kaiser report, a more detailed reprise of one published in 2011, offered new information by breaking down the projected reductions in federal Medicaid spending in each state, should the election shift the balance of power in Washington and the Republican budget plan is enacted.

Kansas would see a 36 percent reduction in federal Medicaid dollars over the 2013-2022 period, or about $12 billion, according to the report.

Kansas is expected to spend about $3.2 billion on Medicaid next year, with the federal government picking up about 57 percent of that cost.

The analysis drew on estimates prepared earlier by the Congressional Budget Office.

The projected reductions in spending from repealing Obamacare were based on an assumption that each state would expand the number of people eligible for Medicaid services under the law. The U.S. Supreme Court ruled earlier this year that states could not be obliged under the law to expand Medicaid eligibility.

Some Republican governors have signaled that their states would not add people to Medicaid, should the health reform law stay on the books.

Brownback has been a vocal opponent of the Affordable Care Act, but has not yet said whether he would propose expanding the program in Kansas. He has said he expects the reform law to be repealed.

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