The Trump Administration has issued guidance that would radically overhaul Medicaid coverage. Under the guidance, states could apply for waivers that would convert their Medicaid programs for many adults into a form of block grant, with capped federal funding and new authorities to cut coverage and benefits.

The proposed waivers are a lose-lose proposition for people with Medicaid and for states.

Far from promoting better health outcomes, the waivers would worsen people’ health by taking away coverage and reducing access to care. For states, they would mean greater financial risk. Federal funding would also likely be cut during recessions, public health emergencies, and other times when states face high demand for coverage strain on other parts of their budget.

Our new paper answers some of the frequently asked questions on this new guidance including: “Are these waivers legal,” “who could be subject to them,” and “what cuts to coverage and benefits would the waivers allow?”