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What is Donald Trump's Medicaid plan and why the Urban Institute said it won't work: 3 things to know

Presidential candidate Donald Trump has a plan for Medicaid, and an Urban Institute analysis debates its effectiveness, according to Forbes

Here's what you should know.

1. Mr. Trump wants the Centers for Medicare and Medicaid Services to provide "block grants" to states so they can manage their programs.

2. The Urban Institute said disparities would be created on a state-by-state basis by the idea, and it would ultimately increase taxes is Medicaid coverage eligibility was increased.

3. If this method was implemented, it would favor states with higher incomes which might get grants several times higher than that of a low-income state.

The analysis' authors John Holahan and Matthew Buettgens of the Urban Institute said, "There are simply no politically easy ways to implement block grant or per capita proposals in Medicaid given the substantial variation that exists in federal spending across states. The policies would reduce states' authority to make policy decisions over their own programs. These mechanisms would threaten current coverage levels and benefits that low-income people often need yet cannot afford themselves."

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