AquinaSeptember 24, 2017

Graham-Cassidy Health Care Bill: What you need to know

HEALTHCARE NEWS UPDATE

The latest Republican attempt to repeal Obamacare, which is expected to hit the Senate floor for a vote this week, would keep much of the Obamacare tax structure in place, but it would give the money back to the states in the form of block grants and would allow states to design their own health care systems.

New analysis from Avalere finds that the bill to repeal and replace the Affordable Care Act (ACA) would lead to a reduction in federal funding to states by $215B through 2026 and more than $4T over a 20-year period.A recent article by Politico stated that the bill would overhaul or eliminate major sections of the health care law, including its subsidized insurance coverage and Medicaid expansion. Instead, states would receive block grants, or a lump sum of money from the federal government, which they could use largely as they see fit.

Here’s a what the proposed bill will eliminate from the Affordable Care Act:

  • Federal funding for Medicaid expansion would be eliminated and reallocated in the form of a lump sum that states could spend however they chose. This funding would expire in 2027.
  • Current subsidy payments would expire in 2020. States could use a portion of their block grant to fund cost-sharing subsidies, but funding decisions would be made on a state-by-state basis.
  • Federal tax credits would expire in 2020, but states might choose to use a portion of their block grants to fund them.
  • Fines for both the individual and employer mandate would disappear.

What does this mean for your practice?

If the bill does pass, the full financial impact on healthcare providers may not be known for quite some time. What is certain is that patients will still need the level of care you currently provide.

To assist you through this time of uncertainty, we’re here to help. Speak with a Provider Web team member today. We’ll discuss the financial tools available to help you grow.