Analysis estimates AHCA would cut $43 bilion in Medicaid funds for children

The American Health Care Act, which passed the U.S. House earlier this month, would result in a cut of $43 billion over 10 years in funding for Medicaid coverage of children, according to a new study (Source: “Study: House ObamaCare repeal bill cuts $43B in Medicaid funds for children,” The Hill, May 18, 2017).

The study from the consulting firm Avalere finds that the cuts to coverage for non-disabled children would come as a result of a new cap on Medicaid payments that the bill would impose, known as a per capita cap. 

“Over time, per capita caps could significantly reduce the amount of funding that goes towards Medicaid coverage for children,” Dan Mendelson, president of Avalere, said in a statement. “While local control and more efficient operation of Medicaid programs are laudable goals, coverage and access for low income children are ultimately dictated by federal funding, and reductions of this magnitude could disrupt access.” 

Republicans argue that the cap in the bill is necessary to get a hold on what they view as unsustainably high federal spending on Medicaid.