STEPHANOPOULOS: But most of benefits go to millionaires.

RYAN: Medicaid — it’s — we’re repealing all of the Obamacare taxes. But the Medicaid, what we’re doing with Medicaid, we’re giving the states the ability to customize Medicaid to meet the particular needs of their vulnerable populations. You’ve got to remember, Medicaid is a program that is administered by the states, but micromanaged by the federal government, and not very well. More and more doctors are refusing to even accept people with Medicaid. And so we want to give the states the ability to customize the Medicaid program to work for their particular states.

GEORGE STEPHANOPOULOS: But you’re saying they can do that with $880 billion less. You’re saying they can do it with $880 billion less.

RYAN: We’re — we’re giving states the ability to run their own Medicaid program. And it is increasing for medical inflation.

And by the way, we recognize that for certain people in Medicaid, the disabled, the aged, the people in nursing homes, we’re giving them a bigger increase so that their funds are even more than everybody else. And so by giving states the right to run Medicaid, and giving them a block grant, per capita bloc grant, or a bloc grant, and then increasing that the spending by medical inflation, I hardly think that’s draconian.

STEPHANOPOULOS: So, you don’t think anyone will be hurt when you’re taking $880 billion out of the system?

RYAN: No, no, I don’t, because I think the micro-management of Medicaid by the federal government. The Medicaid system isn’t working. Doctors aren’t taking Medicaid, hospitals can’t survive with Medicaid alone.