Phase 4: Wave 4: everyone · Step 4.3
Fold Medicaid and CHIP into UHP
Year 4 (dual eligibles and children earlier) · States; UHADiscuss this step
Every existing law, program, institution, or practice this step changes: what it is today, what happens to it, when, and what that costs or trades off.
| What | Today | Change | Trade-off |
|---|---|---|---|
| Medicaid (acute care) absorbedYears 1–4 Federal programs | 84.3M enrollees; state-run with federal match (FMAP); income eligibility varies by state (10 states have not expanded); ~75% in managed care; annual redeterminations. | Folded into UHP by age wave; acute-care eligibility rules, redeterminations, and managed-care contracts end. States pay a maintenance-of-effort amount instead of their share. Federal share of Medicaid $596.7B → $596.7B State Medicaid share → UHP maintenance-of-effort payment $345.7B → $345.7B | Enrollees go from the lowest-paying payer to the same rate as everyone; states lose program control. |
| Medicaid non-medical supports amendedYear 4 Federal programs | Some states use Medicaid for housing supports and social-needs pilots (e.g., 1115 waivers). | A residual, optional Medicaid continues for non-medical supports with federal match. | Keeps innovation in social supports; continues some state-by-state variation. |
| ACA Basic Health Program (NY Essential Plan, MN MinnesotaCare, OR Bridge) absorbedYears 1–4 Federal programs | State programs for people just above Medicaid income. | Absorbed into UHP. | Simplification; states lose a policy tool they built. |
| State Medicaid agencies amendedYears 3–5 States & localities | Run eligibility, managed-care contracting, and payment. | Wind down acute-care functions; some staff join UHA regional offices. | Administrative savings; job losses in state government. |
| County indigent-care programs & public hospital subsidies amendedYear 4 States & localities | Counties fund care for uninsured residents. | Need largely ends; county funds can shift to public health. | Local budget relief; counties must decide whether to keep public hospitals. |