Filed Under:Health Insurance, Ltci

The Other Paul Ryan Plan: $800B in Medicaid Cuts

Paul Ryan (AP Photo/Mary Altaffer)
Paul Ryan (AP Photo/Mary Altaffer)

WASHINGTON (AP) — There's another Paul Ryan plan for health care, a fundamental change in caring for the poor and disabled that would affect many more people than the Medicare overhaul the GOP vice presidential candidate is best known for.

Under the Wisconsin congressman's Medicaid plan, states would take over the program. At the same time, Ryan's budget would reduce projected federal spending on Medicaid by about $800 billion over 10 years, dramatically shrinking it as a share of the national economy.

Bring it on, says Wisconsin Health Secretary Dennis Smith, who oversees Medicaid in Ryan's home state. Smith, who works for Republican Gov. Scott Walker, says states can cut costs without gutting services by running Medicaid more efficiently.

"Everybody agrees that there is excess cost in the health care system, so by golly, give us the flexibility to address it, and we will," said Smith. "We can serve the people on Medicaid with the adjustments the Ryan budget. We can make that work."

Under current law, the federal Medicaid share is pegged to program enrollment, not population growth, said John Holahan, director of the Health Policy Center at the nonpartisan Urban Institute. That means federal funding increases when the Medicaid rolls swell. But under Ryan's plan, "there are no provisions to automatically deal with recessions," said Holahan. "The demand for Medicaid goes up at the same time state revenue is going down."

—Would low-income and disabled people still have a legal right to coverage?

Copyright 2016 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Nichole Morford

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