Seema Verma, administrator of the Centers for Medicare and Medicaid Services, announced a new way states can operate their Medicaid programs. (MANDEL NGAN / AFP VIA GETTY IMAGES)

The Centers for Medicare and Medicaid Services (CMS) announced that states could request a change in the way the federal government pays its share of Medicaid expenses. Called the “total expense model,” it would replace the current funding system – the federal contribution is determined based on each state’s per capita income – with a capped federal grant. While proponents say a spending limit would promote innovation and efficiency, disability advocates and others warn the new model could lead to essential health care services being reduced or eliminated.