Medicaid Director Maureen Corcoran says Ohio has no plan to take up an offer by President Donald Trump’s administration to give states greater flexibility in Medicaid spending in exchange for limits on how much the federal government contributes.
Corcoran told The Dispatch on Wednesday that while she appreciates the option, Republican Gov. Mike DeWine has other priorities and she will not seek block grant funding, at least not now.
“It’s a welcomed additional tool and flexibility, and at the same time I appreciate the support and cooperation and assistance of the (Trump) administration as we’re pursuing what the governor has laid out,” she said.
Critics have urged state officials to reject the plan, arguing it would allow the federal government to cut Medicaid funding to states and cause low-income people to lose health coverage.
The proposal, outlined last week by the Centers for Medicare and Medicaid Services, gives states the option to apply for a federal waiver to change the way a portion of Medicaid is paid. Instead of paying a share of Medicaid expenses, the federal government would give states a block grant, or a predetermined fixed amount.
In exchange, states would have the ability to limit benefits and drug coverage, charge co-pays and impose work requirements.
The plan is restricted to able-bodied adults under age 65, the so-called expansion population, and would not apply to children, pregnant women, the elderly or disabled.
Corcoran said the proposal is directed more toward states that have not expanded their Medicaid programs. Ohio, she noted, already provides coverage to adults without dependent children and enrolled them in managed care to control costs. Able-bodied adults also will soon be required to be working or training for a job to receive coverage.
The state is now focused on updating contracts with the private companies hired to manage Medicaid benefits to improve care coordination, pharmacy management and other services, she said.
On Tuesday, Ohio’s four congressional Democrats urged DeWine to reject the federal block grant proposal.
“The Trump administration’s proposal is a radical betrayal of the most vulnerable Americans, including millions of children and older adults,” said Rep. Marcy Kaptur, D-Toledo. “It will allow states to undermine the delivery of care for more than 71 million people currently on Medicaid and its affiliate, the Children’s Health Insurance Program.”
Likewise, Sen. Sherrod Brown said the proposal would limit funding and reverse the progress of Medicaid expansion.
“Block-granting Medicaid is short sighted and would limit Ohio’s ability to combat public health crises like addiction and maternal mortality,” he said.
The state’s $26.8 billion Medicaid program last year provided health insurance to nearly 3 million poor and disabled Ohioans, covering half of all births and 3 in 5 nursing home residents. The federal government paid $18.3 billion or about 68% of costs with the state picking up the rest.
ccandisky@dispatch.com
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