Comments on: Three Cheers for Rhode Island Medicaid Reform http://healthblog.ncpa.org/three-cheers-for-rhode-island-medicaid-reform/ Health Care Policy and Reform Insights | NCPA Sun, 12 Feb 2012 00:03:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Martin http://healthblog.ncpa.org/three-cheers-for-rhode-island-medicaid-reform/comment-page-1/#comment-39340 Martin Fri, 03 Oct 2008 15:17:07 +0000 http://www.john-goodman-blog.com/?p=686#comment-39340 Under the matching formula, the state's incentives are horrible. Every time a dollar is wasted, the federal government pays about 60% of the cost. On the other hand, every dollar of waste eliminated returns 60 cents to the feds and only 40 cents to the state. With a block grant, the state gets the full benefit (the whole dollar) of each dollar of waste it eliminates and bears the full cost of every dollar it wastes. Under the matching formula, the state’s incentives are horrible. Every time a dollar is wasted, the federal government pays about 60% of the cost. On the other hand, every dollar of waste eliminated returns 60 cents to the feds and only 40 cents to the state.

With a block grant, the state gets the full benefit (the whole dollar) of each dollar of waste it eliminates and bears the full cost of every dollar it wastes.

]]> By: Joe S http://healthblog.ncpa.org/three-cheers-for-rhode-island-medicaid-reform/comment-page-1/#comment-39339 Joe S Fri, 03 Oct 2008 15:12:25 +0000 http://www.john-goodman-blog.com/?p=686#comment-39339 So why do we keep hearing that block grants under Medicaid are impossible? If Rhode Island can do it, can't every other state? So why do we keep hearing that block grants under Medicaid are impossible? If Rhode Island can do it, can’t every other state?

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