Republicans are at it again. This time the big idea is to put the responsibility for administering health care in the hands of governors, or as Politico put it, “blow up” Obamacare rather than repeal it.
The proposal spearheaded by Sens. Bill Cassidy of Louisiana and Lindsey Graham of South Carolina would send billions of dollars in federal funding set aside for Obamacare directly to states in the form of annual block grants, and give them near-complete control over how to use the money. States could pour funds into ensuring Obamacare continues to function, they said. And those states that don't would also be free to scrap their health care systems and start anew with little federal interference. [...]
But in practice, it’s not likely to be that simple. The so-called Graham-Cassidy plan would still force deep health spending cuts, as well as set new limits that would end Medicaid’s open-ended entitlement status and threaten subsidies designed to help people afford coverage. Each element could raise objections from moderate GOP senators. That comes on top of keeping nearly all of Obamacare’s taxes, a likely deal-breaker for conservatives still intent on scrapping the entire law.
So let's get this straight—this new attempt pleases no new contingents and potentially alienates the votes of everyone from moderates to conservatives needed to pass it?
Well, at least it will shore up the markets in the states...
It also risks upsetting the insurance industry, which has proved a powerful opponent to the repeal efforts to date. The Graham-Cassidy proposal could generate massive uncertainty in pockets across the nation as individual states race to remake their insurance markets. Broadly uniform regulations and benefit standards would be upended in favor of a patchwork of wildly varying markets, forcing insurers to reevaluate their participation — and prospects for making a profit — across a new frontier for health care.
Sounds like just the type of uncertainty insurers despise, not to mention consumers. Perfect.