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Senate Plans To Phase Out Medicaid Expansion Gradually

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Jack Crowe
June 7, 2017 5:10 PM ET

The Senate is planning to gradually reduce federal Medicaid spending over three years starting in 2020.

The leading Senate plan is to use a “glide path” approach to gradually reduce federal Medicaid funding over a three-year period beginning in 2020, according to Axios. Senate Majority Leader Mitch McConnell reportedly recommended the plan to GOP Senators on Tuesday.

The prospective bill diverges from the AHCA, which would immediately cut enhanced Medicaid funding for all enrollees who sign up after the 2020 deadline. While the Senate bill is shaping up to take a more moderate stance on Medicaid expansion, it will reportedly grow the per person funding cap at the same rate as the AHCA.

The issue of state Medicaid expansion has been contentious as a number of GOP Senators accepted expanded Medicaid funding under Obamacare, making a sudden elimination of the funding in 2020 politically perilous. The CBO estimated the AHCA would cut $839 billion from Medicaid over the next decade. (RELATED: GOP Senators Can’t Agree On Medicaid Reform)

 While McConnell’s recommendation appears to be the leading plan as of now, the issue is still being debated as conservatives want a lower growth rate for the per person funding cap and moderates are calling for a more gradual reduction in Medicaid funding reduction.

GOP Sen. Rob Portman of Ohio apparently came up with the plan for a gradual reduction in federal Medicaid funding but has called for a seven year rollout, rather than the three years recommended by McConnell.

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