A potential overhaul of the Medicaid program would significantly affect beneficiaries of Medicare as well , despite public ’ assurances to the contrary . The per - capita caps proposed in overhauls such as the withdrawn GOP repeal would also affect Medicare recipients , as around 11 m Medicare beneficiaries also require Medicaid assistance . A per - capita cap would reduce contributions by the federal government , turning an open - ended state contribution into a lump sum payment , and putting pressure on long - term supports and services ( LTSS ) that are seen as “ optional ” . These LTSS options in generous states currently help to make federal spending more efficient , leading to concerns that Medicare costs will increase without these caps . Per - capita caps could also lead to a lack of integration between Medicare and Medicaid programs , leading to increased costs and a lack of incentive for states to continue offering home - based services rather than nursing home facilities .
A potential overhaul of the Medicaid program would significantly affect beneficiaries of Medicare as well, despite politicians’ assurances to the contrary. The per-capita caps proposed in overhauls such as the withdrawn GOP repeal would also affect Medicare offerings, as around 11m Medicare beneficiaries also require Medicaid assistance. A per-capita cap would limit contributions by the federal government, making an open-ended state entitlement into a lump sum payment, and putting pressure on long-term supports and services (LTSS) that are seen as “optional”. These LTSS options in generous states currently help to make Medicare spending more efficient, leading to concerns that Medicare costs will increase without these services. Per-capita caps could also lead to a lack of integration between Medicare and Medicaid programs, leading to increased costs and a lack of incentive for states to continue offering home-based services rather than nursing home facilities.