If the per capita caps endorsed by the GOP-backed American Health Care Act (AHCA) are used to distribute Medicaid funds then Medicaid payments for children’s healthcare between 2020 and 2026 will be reduced by at least $43 billion, according to a new study from the healthcare consulting group Avalere Health.
Massachusetts would lost $714 million over the 10-year period in funding for non-disabled children’s healthcare.
“Over time, per capita caps could significantly reduce the amount of funding that goes towards Medicaid coverage for children,” said Dan Mendelson, president at Avalere Health. “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.”
An MHA analysis of the methodology Avalere used to reach its conclusions finds that the study is credible.