Analysts Warn Federal Medicaid Changes Could Force Large State Budget Cuts

Jan 14, 2025

A Department of Legislative Services briefing outlined multiple federal policy changes that could shrink federal Medicaid funding for Maryland — including block grants, reduced enhanced matching funds and narrower eligibility — and provided state-level dollar estimates for some scenarios.

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Anne Braun, an analyst with the Department of Legislative Services, told the Appropriations Committee that several federal policy options under discussion could substantially change how Medicaid is funded and administered and that the effect on Maryland’s budget is uncertain.

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