Download or read book Capping Medicaid Funding written by and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A "block grant" is a fixed amount of money that the federal government gives to states for a specific purpose. (Sometimes, block grants are referred to as "capped" funding or "allocations.") In Medicaid today, states are reimbursed for actual Medicaid costs instead of being limited to a specific amount of federal funding. This financing system ensures that federal funds are spent efficiently and only for the purposes intended in federal law. Under a block grant, the federal government would estimate in advance how much states need so some states get more than they need and others get less than they need.