Hospitalization and other short-term care would still be funded by the same state-federal match for elderly Medicaid recipients and the disabled.
Advocates have warned that those groups would likely be hit hardest by Medicaid block grants. Their high cost would make them an easy target as states seek to make major dents in Medicaid spending.
But Coburn's bill would still give states the flexibility to cut nursing home stay and other long-term care for those high-risk populations. It also would repeal a section of the healthcare reform law that blocks states from cutting their Medicaid eligibility standards.
Standalone bills to repeal that requirement have been introduced in both the House and Senate, and a House subcommittee passed the measure earlier this month.