The Trump administration is considering changing how the federal government measures inflation for the purpose of calculating the federal poverty level.
Such a change, if implemented, could potentially reduce inflation-related increases in the federal poverty level, which in turn could limit the ability of some individuals and families to qualify, or continue to qualify, for a variety of public safety-net services – including, potentially, Medicaid.
Among the possible alternatives to the current methodology for calculating inflation is the Chained Consumer Price Index for All Urban Consumers. The Obama administration also explored substituting this index for the current inflation factor.
Any change that makes it more difficult for people to qualify for Medicaid could be particularly damaging to private safety-net hospitals, which are generally located in communities with especially large numbers of low-income residents. If patients lose their Medicaid eligibility because the criteria for participating in the program change, that could leave such hospitals serving even more uninsured patients and providing even more uncompensated care than they already do.
The federal Office of Management and Budget has issued a request for comment about various inflation factor calculation alternatives. Go here to see OMB notice Request for Comment on the Consumer Inflation Measures Produced by Federal Statistical Agencies. Comments are due in late June. Learn more from the New York Times article “Trump Administration Seeks to Redefine Formula for Calculating Poverty.”