Leaked Republican ACA replacement would reduce insured Americans & cost states billions — 3 key notes

Washington, D.C.-based Avalere Health analyzed the leaked potential Republican ACA plan and found it would significantly reduce the insured U.S. population and cost states billions, the Washington Post reports.

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Here’s what you should know.

1. Political analysts expect Republicans will change how the ACA funded Medicaid. In the current law, the federal government provided substantial funding to states that expanded Medicaid. The GOP ACA draft would replace that system with block grants. Avalere says the grants would lead to cuts in eligibility, benefits and/or payment rates.

2. Avalere projects if the GOP ACA replacement changes income-based tax credits to age-based tax credits, a hypothetical state with 300,000 people enrolled in individual markets would see a 30-percent decline in coverage with 90,000 losing insurance.

If that state did not expand Medicaid under the ACA, it could see a 50 percent decline in coverage with 150,000 losing coverage.

3. Governors Association Chairman Gov. Terry McAuliffe (D-Va.) said to the Post the report was frightening to everyone.

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