From: The Honorable Todd Rokita
Sent By:
Date: 12/21/2015

Dear Colleague:

Please join me in cosponsoring the “State Health Care Flexibility Act of 2016”.  The State Health Flexibility Act would combine federal funding for Medicaid and the State Children’s Health Insurance Program (CHIP).  By combining these voluntary programs into a single block grant, states, not the federal government, would have the sole authority to determine eligibility, benefits, provider reimbursement rates, and to improve the quality of care and access to vital services.

As Medicaid has expanded into the largest federal means-tested entitlement program, it is becoming a burden and making it difficult to provide quality care to the very individuals these programs are designed to assist.  In addition to common reports of misuse and fraud, its open-ended entitlement structure means the more states spend, the more money they get from the federal government.  Medicaid spending as a share of state budgets continues to increase, reaching 24.5 percent in State Fiscal Year 2013.

In order to lessen the burden that these programs place on states, the State Health Flexibility Act would:

  • Establish a single “Health Assistance for the Needy and Disadvantaged” block grant to states.
  • Fund the block grant from 2016-2025 based on 2013 spending levels for Medicaid and CHIP, which could save nearly $2 trillion compared to current law under the Affordable Care Act.
  • Allows states to set up rainy day funds using their federal Medicaid block grant, and allow states to transfer up to 30% of federal block grant funds to other social programs such as TANF, SSI, and SNAP.
  • States would be given the sole authority to address waste, fraud, and abuse.

This identical bill was previously supported by both Americans for Prosperity and the American Legislative Exchange Council.  For more information or to become an original co-sponsor, please contact Parker Reynolds by phone at 202-225-5037 or by email date to become an original is January 8, 2016.


Congressman Todd Rokita

Member of Congress