So it's wealth redistribution.
I don't trust Rand Paul not to eventually vote for this, but this is pretty brutal:
Block grants are such bullshit and such a go to Republican idea, "states rights" and such. Just write poor red states blank checks to do whatever they want to balance their shitty budgets while not using the grant money for anything remotely related to healthcare or helping people. Then after massive failure the federal government steps in and spends even more money cleaning up the mess while rubes from the state applaud the shitty local government.
^^ Arizona governor. Which means they likely have McCain on board.
Because those companies are profit driven and sell the fact that they will manage the states risks. Simple math does not allow this but who ever heard of government employees using simple math. Example, the medicaid overhead rate is about 6%, when you have managed care overhead added in it runs 11-14%, you are already at a loss of 5-8%. Where does that additional 5-8% come from you may ask. Well it comes from monies that used to cover patient care. Seems simple to me, you have less for care so you have to deny care, cut reimbursement, or get more money from the state next budget.Based on what I see in the market. Most states are turning to managed Medicaid companies to save them $. Same applies to Medicare Advantage. I'm not sure I could tell you the exactly the underlying reasons but clearly these entities have built out effective capabilities that the feds & states lack, specifically in the care management delivery areas.
They have the votes
Just saves taxpayers $80 billion, but no big deal I guess.
Taxpayers will spend that much more on insurance or out of pocket.