To lower government spending on Medicaid, some conservatives have proposed limiting the federal contribution to each enrollee's health coverage. Under the American Health Care Act, states would receive payments during the year based on their estimated number of Medicaid beneficiaries and on the per capita cost of serving various groups, such as children, adults, people with disabilities, or the elderly.
Under the House bill, states would receive payments during the year based on their estimated number of Medicaid beneficiaries and on the per capita cost of serving various groups, such as children, adults, people with disabilities, or the elderly. The principal per capita payment would reflect a state's expenditures “directly” related to health care. The House bill also adjusts spending for inflation, based on the medical component of the consumer price index.