Romney plan calls for Medicaid block grants, repeal of Obama health law

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Romeny's plan also proposes converting federal Medicaid spending into block grants for  states. The federal government currently pays a certain percentage of total Medicaid costs, meaning it spends more when more people need the program. Romney said the switch to a fixed grant amount could save the federal government $200 billion per year.

House Republicans' budget proposal also calls for Medicaid block grants.

Romney's economic plan doesn't directly address the single biggest driver of federal healthcare spending — Medicare. It says current Medicare recipients shouldn't lose their benefits, but that the program isn't sustainable for future generations.

"One option that should not be on the table is raising the payroll tax or expanding the base of income to which the tax is applied," Romney's plan states. "Similarly, with respect to Medicare, the plan put forward by Congressman Paul RyanPaul Davis RyanJuan Williams: Pelosi shows her power Cheney takes shot at Trump: 'I like Republican presidents who win re-election' Cheney allies flock to her defense against Trump challenge MORE makes important strides in the right direction by keeping the system solvent and introducing market-based dynamics. As president, Romney’s own plan will differ, but it will share those objectives."

Ryan has proposed converting Medicare into a sort of voucher system where seniors would get financial help to buy private insurance.