The Republicans have determined how they plan to repeal the Affordable Care Act (ACA) known as Obamacare. However, they have yet to determine how they plan to replace Obamacare. Regardless of the Republican’s ultimate replacement plan, at the heart of the plan is likely to be a Medicaid “block granting” proposal. Blok grants involve the states getting fixed federal grants that would be based on the state and federal Medicaid spending in that state. The grant would grow slightly each year to account for inflation. However, the inflation adjustments are expected to be less than the medical inflation rate.
Proponents of block grants argue that states themselves are better able to determine how to use federal funds for their own residents. However, critics of block grants note that block grants could limit access to health care if the funding becomes squeezed.
You can read more about Medicaid block from an excellent article by Kaiser Health News at the below link.