Armey: Texas Should Receive Medicaid Funds in Block Grant

Monday, 01 Apr 2013 05:19 PM

By Newsmax Wires

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Medicaid is in dire need of help, and in Texas, the federal government should give the state government a lump sum for the program that it can figure out how to spend itself, says former House Majority Leader Dick Armey.

The lump sum is known as a block grant.

Medicaid is jointly funded by the federal government and states. So Armey is referring to how the federal portion is disbursed. Now the feds pay for a set percentage of each state’s Medicaid costs.

“No one spends someone else’s money as wisely as he spends his own,” Armey and former Texas state Rep. Arlene Wohlgemuth write on Politico.

“Medicaid spending has quadrupled over the past four decades . . . Medicaid is on an unsustainable path — unless we offer innovative ideas to solve the spending problem and improve the program’s quality of care.”

Their first idea is for the block grant. “This way, funding would no longer be subject to state spending patterns and schemes to pull down more federal dollars.” States would have an incentive to stabilize Medicaid spending.

“It would also give states more control over program design, and shift accountability for outcomes to them,” the duo writes.

Once the grant program has begun, Texas should shift Medicaid from a defined benefit program to a defined contribution program for most eligibility groups, they say. That means users of Medicaid would put a fixed amount of money into the system rather than receiving fixed benefits.

“This would undoubtedly lead to cost savings and a more sustainable system over the long term,” Armey and Wohlgemuth state. “With skin in the game, and without an unlimited guarantee of state and federal funds, Medicaid enrollees would be more efficient in their use of health care and more engaged as consumers.”



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Calif. Bill Allows Families to Seek 'Gun Restraining' Order

Tuesday, 30 Sep 2014 08:06 AM

California would become the first state to allow family members to petition judges to take away relatives' guns if they  . . .

Body of Missing Arkansas Real Estate Agent Found

Tuesday, 30 Sep 2014 07:53 AM

Police have discovered the body of an Arkansas real estate agent in a shallow grave after she was reported missing last  . . .

Virginia Police: Forensic Evidence Links 2 Cases

Tuesday, 30 Sep 2014 07:44 AM

They both were walking alone, separated from their friends late at night on or near the University of Virginia campus. O . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved