How much can $50 billion mitigate a $1 trillion shortfall?

KFF Health News reported on different ideas being presented regarding how the $50 billion fund of the Rural Health Transformation Program should be spent over the next five years. The program was added to the July federal spending bill to address concerns about the nearly trillion dollar reduction in Medicaid spending over the next decade.

In theory, one might think that $50 billion could go a long way towards creating successful pilot demonstrations that might eventually transform rural health, perhaps substantially reducing costs in the long run. In practice, however, the $50 billion seems completely inadequate in comparison to the projected Medicaid spending cuts. Several of the ideas highlighted in the article seem interesting, but would require substantial recurring funding: "access to healthy food," "statewide universal health care," and "safe and stable housing." Even if these pilot projects demonstrate positive results, states will most likely struggle with continuing to fund them, especially considering the financial challenges that rural health will face over the next ten years.