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Graham-Cassidy Proposal Explained

CBN

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WASHINGTON — Republicans hope to move into warp speed with their revived effort to repeal and replace Obamacare.

It takes shape in the form of proposed legislation called the Graham-Cassidy plan, named after its creators Senators Lindsey Graham and Bill Cassidy.

The White House backs the proposal and is “ready with pen in hand to sign health reform if Graham-Cassidy moves forward.”

Why the sudden interest? And what exactly does the plan include? CBN News breaks down the proposed details to help you gain a better understanding.

First, although known simply as “Graham-Cassidy,” the legislation’s actual title is much longer and includes the names of two other senators: the Graham-Cassidy-Heller-Johnson proposal, endorsed by Dean Heller, R-NV, and Ron Johnson, R-Wis.

The renewed interest comes as the result of President Donald Trump’s deal with Democrats on raising the debt limit and disaster relief funding, which freed up precious time for debate on the Senate floor.

Enter Senators Graham and Cassidy with their plan.

Essentially, the proposal does away with Obamacare’s health insurance mandate for both individuals and employers and directs federal dollars to states through block grants.

Here are the key points of how Graham-Cassidy would change the current health care system under the Affordable Care Act, according to information from Sen. Cassidy’s office:

  • Repeals Obamacare (ACA) individual and employer mandates.
  • Eliminates the medical device tax.
  • Disperses annual federal block grants to states to help people pay for health care — replacing federal money currently used on Medicaid expansion, tax credits, cost-sharing reduction subsidies and basic health plan dollars.
  • Allows states to waive Obamacare regulations.
  • Levels the playing field between states that accepted Obamacare’s Medicaid expansion and those that did not.
  • Protects patients with pre-existing medical conditions.

Supporters say the plan increases fairness, returning power back to the patients and the states “where it belongs” rather than the federal government.

Patients also benefit, they claim, because individuals can use the money from the block grant to buy insurance, pay providers, and help with out-of-pocket costs among other uses.

However, opponents warn states will have less money to work with as the burden of creating health care systems shifts onto the states, which also have fewer resources.

Further, they contend the block grant’s annual rate of increase wouldn’t keep pace with inflation, potentially leading to increased health care spending, greater out-of-pocket costs and, perhaps, leaving millions more uninsured.

The back-and-forth will continue in earnest in the run-up to September 30th.

As CBN’s David Brody explains, that’s the deadline for Republicans to pass their plan with only 50 votes through a process called “budget reconciliation.”

If they fail and try to pursue their repeal effort after that date, they’ll need 60 votes. That’s a tough climb considering Republicans only have 52 GOP votes. They fell three votes shy of securing a simple majority in July, which sunk their previous health care initiative, the Better Care Reconciliation Act, or BCRA.

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