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Legislation Seeks to Rebalance States' Medicaid Matching Eligibility

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Legislation Seeks to Rebalance States' Medicaid Matching Eligibility

June 25, 2012

On June 20, Rep. Bill Cassidy (R-LA) introduced a bill that would distribute federal Medicaid funds on a per-capita basis to states based on the number of Medicaid enrollees in four categories: the elderly, blind or disabled, children and adults.

States could combine Medicaid and Medicare payments for dual eligibles under the legislation. However, in exchange for setting the overall level of federal funds higher than it currently is, states would no longer be allowed to use provider taxes or intergovernmental transfers to bring in additional federal funding. Additionally, the plan would set up bonuses for top-performing states, which Cassidy argues will save money and improve the quality of health care for enrollees.

Cassidy acknowledges that it is unlikely this legislation will be put to a vote in this session of Congress, but hopes that it will be a part of the nation’s ongoing healthcare reform discussion going into next year.