The Center on Budget and Policy Priorities has released a brief arguing that the Children's Health Insurance Program's (CHIP) success does not contribute to the argument to make Medicaid a block grant program.  The authors argue that while states receive fixed allotments of funding under CHIP, Congress has ensured adequate funding for programmatic success.  The brief argues that converting Medicaid into a block grant program would result in insufficient funding, negatively affecting health coverage and access.

From the report:

A fundamental feature of proposals to cap Medicaid funding is a reduction in federal funding well below the levels required to meet current service needs. Medicaid under a block grant would operate very differently than CHIP, a program for which Congress has always ended up providing states with adequate funding to sustain (and expand) their CHIP programs. Facing sharply reduced federal Medicaid funding, states would have to cut eligibility, cap enrollment, reduce benefits, and/or further cut provider reimbursement rates, with adverse impacts on low-income beneficiaries.

Full report: CHIP’s Success Not an Argument for Block-Granting Medicaid (PDF | 321.23 KB)

Center on Budget and Policy Priorities.  (2011).  CHIP's success not an argument for block-granting Medicaid.  Broaddus, M.