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Washington D.C. – Today, a new report highlights the importance of Medicaid as a safety net for America’s children and assesses the impact of proposals to block grant the program as a method to curtail Medicaid costs. As Congress returns to work this week, Members of the so-called “Super Committee” are beginning negotiations to determine $1.5 trillion in cuts to meet deficit reduction targets agreed to last month in the Budget Control Act (P.L. 112-25).
The report, entitled Block Grants are Bad for Kids, commissioned by First Focus and authored by Peter Harbage and Sarah Arnquist, describes the enormous success of Medicaid in increasing health insurance coverage among children and examines the dangers of block grants for children, including the possibility of reduced services and increased out-of-pocket costs for parents. More broadly, the report describes how a block grant would diminish the federal entitlement that has ensured health access for millions of Americans. The report finds that a block grant would end Medicaid as we know it, causing states to reduce enrollment, limit benefits, cut provider payments, and shift more costs onto the children and families who rely on public programs.
Bruce Lesley, president of First Focus issued the following statement:
“As Congress begins its work to secure significant savings as required by the debt ceiling agreement, it is important to remember that Medicaid serves some of our neediest children, seniors, parents, and people with disabilities, who have serious health problems and need access to affordable and efficient health care services. This paper provides timely information for policy makers who may not recognize that nearly one-third of children in America rely on Medicaid.
“Medicaid is essential for the health, well-being, and future success of our nation’s children. In fact, the evidence is clear that a Medicaid block grant will only exacerbate the impact of the ongoing recession, increasing our nation’s uninsurance rates and deepening state budget crises. Medicaid works for our children and serves an essential role in protecting the health and finances of millions of needy American families. This report should be a reminder for lawmakers that arbitrary cuts to Medicaid are not the answer when it comes to securing our nation’s future economic prosperity.
“There’s nothing more painful than having a sick child and not being able to take them to the doctor because you can’t afford it. Fortunately, Medicaid is there to ensure kids get the care they need to start out with a healthy brain, a healthy body, and a healthy chance at success.”