Former health secretary anticipates trump administration will implement medicaid block grants

Former Health Secretary Dr. Tom Price has predicted predicted that the incoming Trump administration will focus on allowing "skinnier" insurance plans and implementing block grants for Medicaid , changes that could significantly alter the U.S. healthcare landscape. These shifts could lead to cheaper insurance plans that cover fewer health conditions and deeply impact Medicaid, a critical program that insures 69 million low-income Americans, nearly half of whom are children. Price’s comments signal a potential clash between traditional Republican goals of reducing regulations and social safety nets, and Donald Trump’s promises to address chronic diseases linked to poverty while tackling corporate malfeasance. “I wouldn’t be at all surprised if there [were] discussions about allowing states, if they wanted to, to block grant Medicaid and implement other options to cover more individuals in their state,” Price said in an exclusive interview with The Guardian . He added that the new administration’s focus would likely include reducing regulation to encourage innovation, a principle Trump has championed throughout his political career. The expectation is that such policies could be part of a broader strategy to reform the healthcare system, emphasizing more choice and less federal oversight. Price, an orthopedic surgeon who served as Trump’s first health and human services (HHS) secretary from 2017 until his resignation later that year, was an outspoken critic of the Affordable Care Act (ACA). During his tenure, he was embroiled in a scandal over the use of taxpayer money to charter private flights, which led to his departure. Despite this, he remains influential in healthcare policy circles. In his interview, Price alluded to the powerful pharmaceutical industry, noting that it has the financial clout to sway lawmakers and influence policy decisions. The pharmaceutical sector spent $293 million on lobbying in 2024, far outspending other industries. While Price is no longer in government, his predictions about the Trump administration’s healthcare plans carry weight, especially as Trump prepares for his second term. Price mentioned that healthcare reform during Trump’s first campaign centered around three key principles: transparency, competition, and choice. These terms are typically associated with reducing regulations in insurance markets to allow for less expensive, though less comprehensive, plans. Recently, there has also been bipartisan support for legislation promoting health price transparency, although its impact on reducing healthcare costs is expected to be minimal. However, opponents of these deregulatory ideas argue that most healthcare services cannot be treated like ordinary consumer goods, such as mattresses or cars. They contend that offering less comprehensive insurance plans could lead to higher medical debt, particularly as many Americans are already burdened with hospital bills despite having insurance. Critics also highlight that rising cost-sharing often leaves insured individuals financially strained, exacerbating the country’s medical debt crisis. Before his appointment to HHS, Price was a longtime member of Congress, where he advocated for a repeal of the ACA. His critics, particularly health advocates, opposed his nomination, citing his views on healthcare and LGBTQ+ rights. Price’s district in Georgia also faced significant public health challenges, including high rates of drug overdoses and HIV infections. Price’s tenure, though brief, now looks conventional compared to the controversial nomination of Robert F. Kennedy Jr. as the incoming HHS secretary. Kennedy, a vocal vaccine skeptic, has drawn heavy criticism for promoting unproven treatments and spreading misinformation, particularly regarding vaccines and chronic diseases. His views sharply contrast with the scientific consensus on health issues, raising concerns about how he might handle the nation’s ongoing public health crises, including chronic disease and childhood health. Price, however, remained optimistic about Kennedy’s potential, stating that once confirmed, Kennedy would have the opportunity to learn from experts within the department. Despite the controversy, Price suggested that the Trump administration would still have a limited four-year window to make meaningful healthcare reforms, noting that significant public policy changes require broad consensus and time to implement. In the end, Price’s comments offer a glimpse into the potential direction of Trump’s healthcare policies. With an eye on reducing regulations and expanding choice in insurance plans, the administration will likely continue its efforts to reshape the U.S. healthcare system. However, the approach will undoubtedly face challenges, especially from those who believe that such changes could undermine the core safety nets that millions of Americans rely on.