Cassidy-Graham Plan’s Damaging Cuts to Health Care Funding Would Grow Dramatically in 2027
Legislation to repeal and replace the Affordable Care Act (ACA) sponsored by Senators
In fact, starting in 2027, Cassidy-Graham would likely be even more damaging than a straight repeal-without-replace bill because it would add large cuts to the rest of Medicaid -- on top of eliminating the Medicaid expansion -- by imposing a per capita cap on the entire program. The
The Cassidy-Graham legislation would:
* Eliminate the ACA's Medicaid expansion and ACA's marketplace subsidies in 2020 and replace them with an inadequate block grant. The block grant would provide
* Cap and cut federal Medicaid per-beneficiary funding for tens of millions of seniors, people with disabilities, and families with children starting in 2020. Instead of the existing federal-state financial partnership, under which the federal government pays a fixed percentage of a state's Medicaid costs, Cassidy-Graham would cap federal Medicaid funding at a set amount per beneficiary, irrespective of states' actual costs. The cap would grow more slowly each year than the projected growth in state per-beneficiary costs. Prior CBO estimates suggest that Cassidy-Graham would thus cut the rest of Medicaid (outside the expansion) by
These severe cuts would be even more draconian in 2027. Federal funding for health coverage would be cut by
The enormous cut in 2027 reflects two factors. First, the block grant would disappear in 2027. The bill's sponsors have claimed that the rules that govern the budget reconciliation process, which allows the bill to pass the
Second, the cuts from the Medicaid per capita cap would be growing much deeper because the bill would reduce the annual adjustment of the per capita cap to an even more inadequate level starting in 2025. This further cut would significantly enlarge the gap between per capita cap amounts and states' actual Medicaid spending needs and drive severe Medicaid cuts in the second decade, as CBO has found with the Senate Republican leadership bill (the Better Care Reconciliation Act).[3]
See the table here (https://www.cbpp.org/research/health/cassidy-graham-plans-damaging-cuts-to-health-care-funding-would-grow-dramatically-in)
Footnotes:
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[2] See
[3]
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