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STAT+: Trump to end federal funding of certain non-medical services in Medicaid
The services are often aimed at improving housing and nutrition for people in the Medicaid program.
WASHINGTON — The Trump administration said Thursday that it will no longer help states fund non-medical services that often are aimed at improving housing and nutrition for people in the Medicaid program. The change is a departure from the Biden administration’s efforts to improve the health of Medicaid enrollees by paying for non-medical services.
The Centers for Medicare and Medicaid Services sent a letter to states notifying them that it no longer intends to let states use federal matching funds for two types of programs: designated state health programs (DSHP) and designated state investment programs (DSIP). It said it won’t take new applications for these programs, or renew existing efforts as they expire.
CMS said federal funding for these programs has grown from $886 million in 2019 to nearly $2.7 billion this year. By comparison, the federal government spent about $600 billion on Medicaid in 2023. States have been using these programs to get the federal government to pay for services for which states should be responsible, the Trump administration said.
