The current proposals to give block grants to the states and dismantle Medicaid by eliminating the federal-state partnership would destroy the flexible institutional framework that has been so successful. Furthermore, the proposed block grant funding formula actually rewards states that have taken advantage of flaws in the existing Medicaid program. Part II of this Article discusses the failures of the block grant proposal. Part III describes how we can achieve these goals without discarding the federal-state partnership that has served the people of our nation so well during the past thirty years and how we can continue to provide a medical safety net for poor, elderly, and disabled Americans.
