- Eliminate the ACA’s marketplace subsidies and enhanced matching rate for the Medicaid expansion and replace them with an inadequate block grant. Block grant funding would be well below current law federal funding for coverage, would not adjust based on need, would disappear altogether after 2026, and could be spent on virtually any health care purpose, with no requirement to offer low- and moderate-income people coverage or financial assistance.
- Convert Medicaid’s current federal-state financial partnership to a per capita cap, which would cap and cut federal Medicaid per-beneficiary funding for seniors, people with disabilities, and families with children.
- Destabilize the individual insurance market in the short run — by eliminating federal subsidies to purchase individual market coverage and eliminating the ACA’s individual mandate to have insurance or pay a penalty — and in the long run. After 2026, once the bill’s block grant funding ends, it would amount to repeal of the ACA’s major coverage provisions with no replacement — an approach that the Congressional Budget Office (CBO) estimated would cause 32 million people to lose coverage and lead individual markets to collapse in most of the country.
By attempting to push this bill forward now, Senators Cassidy and Graham are reverting to a damaging, partisan approach to repealing the ACA that would reverse the historic coverage gains under health reform and end Medicaid as we know it — even as other members of Congress, with the help of governors and insurance commissioners of both parties, are making progress in crafting bipartisan legislation to strengthen the individual market.
Full report in article.