Issue Brief | Sep 26, 2017

Key Takeaways from the Revised Graham-Cassidy Proposal and CBO Preliminary Analysis

Deborah Bachrach and Patricia Boozang, Manatt Health

The brief provides an overview of the most recent changes to the Graham-Cassidy repeal and replace proposal and a just-released preliminary analysis of the proposal by the Congressional Budget Office (CBO). On September 13th, Senators Lindsey Graham (R-SC) and Bill Cassidy (R-LA)—along with Senators Dean Heller (R-NV) and Ron Johnson (R-WI) and former Senator Rick Santorum (R-PA)—released a new proposal to repeal and replace the Affordable Care Act (ACA). On September 25th, the sponsors released several updates to the proposed legislation. Also on September 25th, the CBO provided its preliminary analysis of one of the earlier versions of the bill.

The key changes in the revised proposal include: additional short-term assistance for low-density states; coverage under the Market-Based Health Care Grants must now meet additional coverage requirements; instead of obtaining “waivers” from federal law, states have new flexibility to offer coverage that does not meet all federal requirements; and states have discretion to allow rating rules that increase premiums for people with pre-existing conditions.