Graham-Cassidy Health Bill Would Shift Funds From States That Expanded Medicaid

Senate Republicans’ latest plan to overhaul the U.S. health care system ends with a massive shift of federal money from states that expanded Medicaid — and are largely dominated by Democrats — to those that refused to expand.

Several analyses of the bill show the pattern. A report by the health care consulting firm Avalere Health shows California and New York losing a combined $123 billion in federal health care funding by 2026, while Texas would see its flow of money from Washington rise by $35 billion.

Two other reports, by consulting firm Manatt and by the left-leaning Center on Budget and Policy Priorities, show the same pattern. And a fourth analysis from the Kaiser Family Foundation release Thursday also largely concurs.


The bill’s sponsors say it’s a matter of basic fairness.

“Four states get 40 percent of the money under Obamacare: New York, California, Massachusetts and Maryland,” Sen. Lindsey Graham, R-S.C., said on the Senate floor on Sept. 14. “Our goal is by 2026 to make sure every patient in every state gets the same contribution, roughly, from the federal government.”

Sen. Lindsey Graham, second from left, speaks as Sen. John Barrasso, from left, Sen. Bill Cassidy, Sen. John Thune and Senate Majority Leader Sen. Mitch McConnell listen during a news briefing after the weekly Senate Republican policy luncheon on Tuesday. Graham and Cassidy have sponsored a bill to overhaul the Affordable Care Act.

Alex Wong/Getty Images

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