"The House’s plan also restructured the open-ended funding of Medicaid to a per-capita cap scheme, where states receive a capped amount of funding each year per enrollee, and could choose to receive the funding up front in block grants. That Medicaid restructuring increased yearly funding by the medical Consumer Price Index plus 1 percent, a measure designed to keep per-capita caps roughly in line with inflation in the industry, but one that would also underfund Medicaid over time, leading to a growing gap between the number of patients who would be eligible under current guidelines, and the funds available to pay for their care.
Several independent analyses have concluded that this funding structure would lead to large-scale shortfalls in every state, which would need to be closed by reducing enrollment or benefits, and cutting capacity to respond to disasters and public-health crises. Those affected most would be poor children, people with mental-health issues, and disabled people."