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Capped Financing for Medicaid Does Not Account for the Growing Aging Population

New projections from the AARP Public Policy Institute demonstrate that the AHCA’s per capita cap financing proposal will not keep pace with changing demographics, specifically the growing and aging of the 65+ population. Over time, states will not have adequate funding to serve this vulnerable population under the proposed bill.

Shifting to capped financing in Medicaid, as proposed under the AHCA, could constrain the Medicaid program in its ability to adequately serve consumers, including millions of older adults and people with disabilities currently enrolled in the program today. Looking into the future, the aging of the 65+ population, which is not accounted for in AHCA’s Medicaid financing structure, will hit states hard, potentially jeopardizing access to health care and LTSS for future generations, especially Boomers.