Why Block Granting Medicaid Will Work

Naturally, Governor O’Malley opposes this sensible option to save taxpayers dollars and reduce one of the big drivers of Maryland’s habitual structural deficit.

Block granting Medicaid would force Maryland to spend its Medicaid dollars more wisely. Currently, O’Malley has pursued an untenable policy of expanding the program while simultaneously trying to constrain costs. Medicaid spending will consume 20 percent of Maryland’s $34 billion 2012 budget. A curious course for a costly program that provides sub-par care.

Despite O’Malley’s claims, Medicaid block grants would also eliminate the very cost shifting he decries by incentivizing states to root out fraud and abuse.

Block granting Medicaid would also help spur regulatory reform and competition to lower costs in Maryland’s individual and small group insurance markets, currently controlled by just two companies.