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7342733
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Financial Assistance for Health Care Act [Fact Sheet]
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7342733
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contentType
document
title
Financial Assistance for Health Care Act [Fact Sheet]
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White House Press Releases (Ford Administration)
Press Releases
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7342733
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25
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1976-02-25
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2
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1976
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c774bb7fe17a1f98
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Digitized from Box 22 of the White House Press Releases at the Gerald R. Ford Presidential Library
EMBARGOED FOR RELEASE
FEBRUARY 25, 1976
UNTIL 3:00 P.M. (EST)
Office of the White House Press Secretary
THE WHITE HOUSE
FINANCIAL ASSISTANCE FOR HEALTH CARE ACT
FACT SHEET
The President is proposing to improve the efficiency and
equity of health services to the poor by consolidating 16
Federal health programs, including Medicaid, into one $10
billion block grant to the States. Every State will receive
more in FY 1977, 1978 and 1979 than it received in FY 1976.
And, no State will ever receive less than it did in FY 1976.
BACKGROUND
The existing array of Federal categorical health programs
includes varying eligibility requirements. This results in
expensive and cumbersome program administration as well as
gaps in coverage for those who are needy but categorically
ineligible, such as two-parent families, childless couples
and single individuals.
To receive Medicaid funds, States are currently required to
provide matching funds. Under the existing structure of
health programs, some States with high per capita income
receive more than four times as much Federal money per
low-income recipient as do States with low per capita income.
Also, the current system involves programs administered at
the Federal level by six different HEW agencies requiring
over 2300 employees and close to 3000 grants and contracts
to run. Under the President's proposal, one HEW health
agency with 100 employees would be responsible.
DESCRIPTION OF PROGRAM
The objectives of the Financial Assistance for Health Care
Act are to:
-- improve access to quality health care at reasonable costs;
-- achieve over time a more equitable distribution of Federal
health dollars among States in relationship to those
persons most in need;
--- increase State and local control over health spending to:
a. allow each State to set its own priorities for
health programs based on the particular needs of
its low-income population and its resources;
b. allow each State to integrate its programs into a
cohesive total; and
C. increase the States' motivation to control rising
health care costs;
restrain the growth of Federal spending and the Federal
bureaucracy and reduce Federal red tape.
more
The proposal includes a requirement for the development by
the States of a State Health Care Plan. Public participation
in the development of the plan is required to ensure that
increased State responsibility is coupled with expanded public
involvement in the formation of State health policies.
A. Programs Included
The President's proposal would consolidate 16 Federal health
programs into one $10 billion block grant to the States, to
be effective October 1, 1976. The programs, which fall into
four major categories are:
(1) Medicaid;
(2) Public Health Service (PHS) preventive and community
health programs:
--- Community Mental Health Centers
-- Alcohol Project and State Formula Grants
-- Venereal Disease
-- Immunization
--- Rat Control
--- Lead Paint Poisoning Prevention
--- Community Health Centers
--- State Health Grants
-- Maternal and Child Health
-- Family Planning
-- Migrant Health
-- Emergency Medical Services;
(3) Health planning, construction and resources development
programs; and
(4) Developmental disabilities.
A chart is attached to the Supplemental Fact Sheet (Appendix A)
which compares the flow of Federal health service dollars under
current laws to the flow of funds under the President's proposed
consolidation and illustrates the proposed simplification.
B. Funding
The FY 1977 Budget requests $10 billion for the State block
grant with $500 million annual increments in Federal funds in
future years, plus the amounts needed after 1980 to ensure that
no State will in the future receive less under this proposal
than it received in Fiscal Year 1976. An additional $1.5 million
in budget authority is requested for program administration
costs for an estimated 100 positions.
####