Medicaid Block Grant Policy Could Face High Legal Hurdles

A policy being weighed by Trump administration officials that would let the federal government give states a set amount to spend on Medicaid would face tough legal challenges.

Attorneys say a guidance for states on how to apply for block grants would struggle to survive challenges, especially if they focus on provisions in the Medicaid law that determine how the government finances the federal-state program for the poor.

“It’s very hard to square the Medicaid statute with a true block grant proposal,” Nicholas Bagley, a health law professor at the University of Michigan and former Justice Department attorney, said.

Block ...