Republican lawmakers started to lay out their case for the need for major changes to Medicaid, a move Democrats opposed.
The House Energy and Commerce Committee’s Oversight Subcommittee held a hearing Tuesday on how to strengthen Medicaid, the federal healthcare program for low-income residents. The hearing comes as Republicans aim to include Medicaid reforms in any replacement plan for the Affordable Care Act.
Republicans have long sought to transform Medicaid into a state block grant program, in which the contribution to each state is capped. Lawmakers said Tuesday that reforms are needed as spending has grown out of control.
“While Medicaid provides coverage to millions of low-income and disabled Americans, the program is not immune to challenges — including increasing costs, fraud and errors with eligibility determination that result in millions of wasted taxpayer dollars,” said Rep. Greg Walden, R-Ore., chairman of the energy and commerce committee.
Rep. Tim Murphy, R-Pa., chairman of the subcommittee, said that in 2015 federal taxpayers spent $350 billion on Medicaid, with costs rising.
Murphy also pointed to a large amount of improper payments, saying that a federal watchdog reported that in 2014 the government made more than $17 billion in improper payments.
Democrats pushed back against any changes to Medicaid, especially about repealing the Affordable Care Act’s Medicaid expansion in 32 states.
“The law’s Medicaid expansion has helped improve the quality, accessibility and affordability of healthcare for millions of Americans,” said Rep. Frank Pallone of New Jersey, the top Democrat on the committee.
Rep. Kathy Castor, D-Fla., said any efforts to move toward block grants or per capita caps are efforts to “limit federal participation” in the program. That could sabotage the program, she said.
