Oppose Federal Funding Caps on Medicaid Spending

On January 30, the Trump administration announced a new initiative to allow states to set limits on federal funding for Medicaid coverage for non-disabled adults. The federal government currently covers a set percentage of states’ Medicaid costs regardless of total spending. Under the new Trump policy, states could apply for a waiver to receive a limited amount of federal Medicaid funding based on how many nondisabled adults they cover. States that adopt the funding cap will be able to modify their Medicaid benefits to cover fewer prescription drugs and eliminate traditional Medicaid benefits, including long-term care and non-emergency medical transportation. The policy would also let states charge higher Medicaid copays.

The proposed capped funding structure has the potential to increase states’ administrative and cause Medicaid funding shortfalls during economic downturns. Healthcare advocates are concerned the plan could reduce Medicaid patients’ access to both clinical services and prescriptions]. Other critics have questioned whether the Trump administration has legal authority to impose federal spending caps without congressional approval.

Research has shown that Medicaid coverage saves lives and that lack of drug coverage prevents people from taking necessary medications. Urge your representatives oppose the Trump administration's push to impose Medicaid funding caps.

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