New Republican Medicaid Proposal

US Republican state governors have offered a new Medicaid plan to give states more flexibility with block grants and guarantee cover for certain groups of people and benefits. States would have to provide Medicaid for pregnant women and children under six in families with incomes up to 33% above the official poverty level, and services for children aged six to 12 in families below the poverty level. They would also have to provide Medicaid for the disabled, but could set their own definition.

The proposal would guarantee each beneficiary a package of benefits including hospital care, doctors' services, diagnostic tests and childhood immunizations. medicaid would also cover long-term care for low-income people who are disabled or elderly. In contrast to the current scheme, states would receive a fixed amount of federal money to pay for all coverage. They would have to continue spending their own money but the state portion would often be less than is now required.