Fact Sheets

Medicaid Per Capita Caps Jeopardize the Health of Children

Federal Budget
Health

Screen Shot 2016-06-23 at 9.57.02 AMOn June 22, Speaker of the House Paul Ryan (R-WI) unveiled the GOP’s latest Obamacare replacement plan. On the Medicaid front, Ryan is again promoting a “per capita cap” on federal Medicaid expenditures to shrink federal Medicaid spending and score budget savings.

While this approach has been previously discussed as an alternative to a Medicaid block grant, the effect of per capita caps would be equally devastating for the vulnerable populations that rely on Medicaid, including primarily, low-income children, seniors, and the disabled. Like a block grant, a per capita cap serves only to cut federal costs by setting arbitrary limits on federal Medicaid spending.

Not only would a per capita cap jeopardize the Medicaid entitlement by under-funding states, it would force serious cuts in benefits and services for the vulnerable populations Medicaid is designed to protect.


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