States Worry That Deep Cuts To Medicaid May Lie Ahead

Stateline examines what the debt ceiling deal will mean for states and find a mixed bag — at least as Medicaid is concerned. The bill — which the Senate is expected to take up later today — spares Medicaid from immediate cuts and a “trigger” mechanism “that would reduce spending automatically if the special congressional committee does not achieve its deficit-reduction goals.” However, “governors are worried that deep cuts to Medicaid could be an outcome of the committee’s work,” particularly given the administration’s support for a so-called “blended-rate” proposal to shift more Medicaid costs to the states.