The nation’s largest lobby for senior citizens is opposing Republican proposals to transform Medicaid into a state block grant program, saying the idea could cause hardships for low-income seniors.
AARP wrote to House lawmakers Monday outlining their opposition to per-capita caps and block grants to states for Medicaid payments from the federal government. The move comes as GOP lawmakers are considering those the Medicaid reforms in addition to repealing the Affordable Care Act.
AARP is worried that moving from the current Medicaid structure to a block grant, which gives the state a fixed amount, could shift costs to states and their taxpayers.
“With aging demographics, the rising needs of the chronically ill and individuals with some form of dementia, states cannot meet these increased Medicaid costs,” AARP wrote in a letter to the leaders of the House Energy and Commerce Committee’s oversight panel, which held a hearing on Medicaid reforms Tuesday.
AARP noted that block grants to states might not take into account increases in the cost or need for federal funding for Medicaid.
The group also was concerned about per-capita caps, which provide a fixed amount of federal funding per person but allows for growth in Medicaid rolls.
“It is unclear how Congress would determine the baseline amount of the caps in ways that would accurately reflect the cost of care for individuals in each state, let alone determine growth rates that would accurately reflect the cost of care for individuals in each state,” the group said.
AARP added it was concerned about how the caps would be created for children, adults and seniors.
“In terms of poor seniors, we have serious concerns about setting caps at a time when per-beneficiary spending for poor seniors is likely to increase in future years,” the letter said, pointing to continued aging of the baby boomer generation.
The opposition from AARP comes as four Senate and House committees are starting to craft repeal legislation for Obamacare, which expanded Medicaid in 32 states.
The House Energy and Commerce hearing focused on problems with the entitlement program for low-income Americans. Republicans said during the hearing that Medicaid spending is growing, rising to $350 billion in 2015.
