Future of Medicaid under Donald Trump
In “Step #6” of the Trumpcare 7 Point Healthcare Reform Plan; Trump has outlined states that should no longer be provided financial support from the Federal Government for funding. Trumps belief is that there is too much abuse, fraud and financial misuse going on in the Medicaid program and that fraud and waste control would get under control if the States were entirely responsible for funding there Medicaid Program.
President Trumps is anticipating that there will be a decrease in the number of people currently on Medicaid as our economy improves. With an increase in people finding better jobs they would become ineligible for Medicaid due to higher wage earning. However, the length of time he believes it would take for a large percentage of the workforce currently on Medicaid to return to work is unknown. This requires that the Employer provides health coverage. Also note that a large percentage of Medicaid beneficiaries are Americans already working full time job and cannot afford health coverage sponsored by their employer or their employer does not offer any insurance.
Presently Medicaid is funded several ways.
1. Federal Medicaid Assistance Percentage or FMAP – A payment the Federal Government allocates to a state depending how much that state spends on their Medicaid Program.
2. Affordable Care Act – called all states to allow (all) groups of people who made under 133% of the Federal Poverty Level eligible to receive Medicaid.
3. Medicaid Disproportionate Share Hospital Payment – these are payments made to hospitals offering a lot of medical aid for Medicaid and the uninsured Americans which then makes up for lower payments or lack of payments for services. This is to ensure quality care continues to be provided to Medicaid recipients.
4. Most Significant Way Medicaid is Funded is by the States as opposed to the Federal Government using the States funds which are allotted to miscellaneous programs and projects.