Senate majority leader, the Republic Senator from Kentucky, Mitch McConnell, is planning to introduce a bill, to the US Senate next week. The bill, nicknamed ‘Graham-Cassidy, will represent the Republican’s latest attempt to repeal and replace Obamacare.
The bill is named after the bill’s sponsors: the Republican Senator from South Carolina, Lindsey Graham, and the Republican Senator from Louisiana, Bill Cassidy. Republicans are under pressure to get the bill passed before the opportunity to pass it with a simple majority expires with the Reconciliation Bill on September 30th.
The objective of the Graham-Cassidy Bill is to abolish individual and employer insurance mandates and to increase the power of state governors to veto certain regulation in their state. Along with individual and employer mandate, it will eliminate:
- Medicaid expansion
- Cost-sharing subsidies
- Tax credits
And will make changes to:
- Traditional Medicaid
- Essential health benefits
- Price restrictions on older Americans
- Health savings account.
Under the Graham-Cassidy, Bill states will receive their Medicaid funding through block grants. This change will put an end to the Obamacare’s Medicaid program where states could have ninety-percent of their funding for new beneficiaries subsidized by Washington. This encouraged the states to expand their Medicaid programs to include individuals and families earning up to 138% of the Federal poverty level.
Under this new system, southern states that did not expand their Medicaid programs stand to receive more federal funding. Furthermore, the bill will also give greater power to the states by allowing them to spend their funding as they see fit.