How does Trump’s presidency affect Medicaid?

The team at recognizes that some citizens may not know the extent of President Donald Trump’s actions regarding the Medicaid program. Due to public claims that the Affordable Care Act (ACA) and the subsequent additions to the Medicaid Program has failed in its attempts to repair U.S. health insurance, Trump has proposed a new ACA repeal bill that may alter some aspects of the Medicaid program.

Since his inauguration, Trump has adamantly opposed the ACA and suggested many repeals in order to amend the law. Trump’s latest repeal bill, the American Health Care Act (AHCA), concerns the Medicaid Program. The bill seeks to provide financial support to those who can no longer reap the benefits offered by the ACA. Although the bill has yet to pass the Senate, Americans must be able to make an informed decision on the newest repeal bill, which necessitates understanding how Trump’s bill may affect Medicaid and Medicaid patients.

Changes in Funding and Costs

The main alteration Trump suggests in the AHCA affects Medicaid funding. Due to rising health insurance premiums (increased by 105 percent since 2013) and over $3 billion in fees sent to uninsured citizens, Trump advises Medicaid to use block grants. Block grants give a certain amount of money to local or state governments, which they can allocate as they see fit for individual programs.

While Medicaid had always relied on local or state governments for legal authority, the federal government, via the Federal Medical Assistance Percentage (FMAP) agency, dictated how the money should be distributed based on states’ needs and medical costs. However, block grants cannot be adjusted for rising medical costs. The team at reminds citizens that these financial changes may impact the cost of health care for both patients affiliated with Medicaid and those who are not.

In the law’s continued efforts to combat the ACA, the AHCA asserts that funding for states with the greatest populations and economic needs will be prioritized, and billions of dollars will be directed to provide health insurance for citizens who are pregnant or have low incomes. Additionally, $8 billion will help waive increased premium costs with more compensation promised through added tax credits and deductions. Potential cuts to Social Security funds have been discussed because of the AHCA and health care costs may fluctuate. The team at suggests that citizens monitor and record their health insurance costs to facilitate any transitionary processes if Trump’s AHCA funding initiative is enacted.

Changes in Management

Medicaid and the ACA insures about 20 percent of all U.S. citizens, so proper management is essential. If Trump issues block grants for the AHCA, states will have more control over the Medicaid Program than the federal government, but they would ultimately have fewer finances to enforce government policies. This change may encourage states to pursue economically beneficial situations at the expense of health care.

Less federal regulation might also translate to fewer guaranteed benefits for Medicaid patients. However, this is currently conjecture and results may vary by state. The team at recommends that residents research their states’ policies to learn how the AHCA will affect their Medicaid programs.

Changes in Care

The team at knows how important quality care is for families and how concerning changes may be. After implementing the AHCA, not only will the cost of care change, but the nature of care may change as well. The initial loss of coverage following the removal of the ACA in Medicaid practices may affect millions of Americans, and some services Medicaid offers that require large budgets – such as long-term care and child births – may suffer.

However, as stated in ACA protocol, insurers are banned from denying health insurance to citizens with preexisting conditions under the AHCA. The AHCA also promises to introduce competition to bolster the health insurance market.