Verdict's in on Medicaid funding caps, and it's a resounding 'no' from industry

Hospital and insurance groups largely came out in opposition of new optional funding changes to Medicaid that would partially cap federal assistance.

Major provider groups, like the American Hospital Association, the American Health Care Association, the American Medical Association, the Federation of American Hospitals and the Association of American Medical Colleges, warned that the new policy could reduce coverage and access for Medicaid beneficiaries.

While Patrice Harris, MD, president of the AMA, said the organization supports the idea of giving states more flexibility to try new Medicaid models, she said the trade-off — capped federal funds — would increase the number of Americans without insurance.

"While encouraging flexibility, the AMA is mindful that expanding Medicaid has been a literal lifesaver for low-income patients. We need to find ways to build on this success," Dr. Harris said in a prepared statement.

Health plan organizations, including the Association for Community Affiliated Plans and the Alliance of Community Health Plans, also expressed concern with limiting Medicaid funds. However, Margaret Murray, the CEO of ACAP, said the policy does push forward important quality initiatives.

"We applaud the requirement that states taking up this waiver opportunity measure the quality of care delivered through the adult core quality measure set — given the fact that Medicaid represents one-sixth of all healthcare spending, it's imperative that policymakers and others understand that enrollees are getting the accessible, high-quality care they deserve," Ms. Murray said in a prepared statement.

To read more about CMS' overhaul of Medicaid funding, click here.

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