Medicaid provides health insurance coverage for about one in five Americans, also provides financing for the safety net, and is the largest payer for long-term care services in the community and nursing homes for seniors and people with disabilities. Jointly financed by the federal and state governments, states have substantial flexibility to administer the program under existing law. The inclusion of major Medicaid changes in both the American Health Care Act (AHCA) that passed in the House and the Better Care Reconciliation Act (BCRA) considered in the Senate revealed that is hard to gain consensus on significant cuts and reforms to Medicaid. Medicaid has broad general support and intense support from special populations served by the program. In addition, proposed changes would have different implications across states due to significant program variation across states, including implementation of the ACA Medicaid expansion as well as other health status, demographic and state fiscal circumstances. Medicaid financing changes may resurface in the fall as Congress considers reauthorization of the Children's Health Insurance Program (CHIP), broader health legislation, and other priorities (like tax reform) that need offsetting federal savings. Moreover, the Administration can make major changes to re-shape Medicaid without legislation through Section 1115 demonstration waivers and other regulations or guidance. This brief draws on lessons learned for Medicaid from the recent health care debate and looks ahead to the Fall.
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