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As one of our million-plus FreedomWorks members nationwide, I urge you to contact your representative and ask him or her to cosponsor H.R. 4160, the State Health Flexibility Act. Introduced by Rep. Todd Rokita (R-IN), the bill would block grant Medicaid and S-CHIP to the states. The current Medicaid system is based on top-down regulatory controls from Washington. State governments shoulder roughly half of Medicaid’s annual costs but they have virtually no say on how it is run. The State Health Flexibility Act would free states from Washington’s one-size-fits-all dictates so that they can design a program that best meets the unique needs of their citizens.
Medicaid costs have skyrocketed while the quality of care has decreased. Every year, Medicaid takes up a greater share of most state budgets. States now spend more on Medicaid than anything else, including K-12 education programs. ObamaCare will force states to spend up to $118 billion more and offer Medicaid to an additional 17 to 25 million people. Unfortunately, states currently have little incentive to cut costs since the federal government matches 50 to 74 percent of every dollar they spend.
The State Health Flexibility Act will save $1.8 trillion compared to current law under ObamaCare. The bill will further save taxpayers money by allowing states to have full control to determine program benefits, eligibility and reimbursement rates. State governments should be allowed to design these programs since they understand better than the federal government the needs of their citizens. The State Health Flexibility Act meets the seven principles for Medicaid reform adopted by 27 Republican governors in June 2011.
Medicaid and S-CHIP programs are bankrupting many states. Federal Medicaid requirements have stifled state innovation and investment. It’s time to block grant these federal programs to the states. I urge you to contact your representative and ask him or her to cosponsor H.R. 4160, the State Health Flexibility Act today.
President and CEO
[Click here for a PDF version of this letter.]