GOP Proposal Could Slash Federal Obamacare Funding To States By Up To 80 Percent


Sarah Hurtubise

A GOP proposal to repeal and reform parts of Obamacare could cut federal funding to state health care programs between 65 and 80 percent, according to one analysis.

An Avalere Health and McKinsey & Company presentation shown to state governors at a Saturday meeting in Washington, D.C., found that an Obamacare repeal measure that’s been floated by Congressional Republicans would decrease federal dollars going to Obamacare customers in the form of premium and cost-sharing subsidies by drastic amounts.

Obamacare currently doles out premium subsidies based on income level, offering more generous options to poorer individuals. A Republican plan would assign subsidy levels based on age, with older customers eligible for higher premium assistance. The initial GOP plan leaked last week would allow a $2,000 premium tax credit for those under 30, compared to a $4,000 credit for those over age 60. (RELATED: Obamacare Replacement Draft Legislation Leaked)

The plan would also eliminate federal funding for cost-sharing subsidies, which assist Obamacare participants with costs other than premiums, such as co-pays and deductibles.

Avalere and McKinsey found that the age system would limit the amount of customers receiving federal subsidies for their coverage. For states that did not expand their Medicaid programs, federal funding for subsidies would shrink for the average state by $885 million — an 80 percent decline from the almost $1.1 billion currently spent on each state on average.

The study projects that 130,000 current enrollees in one of these states would no longer be able to afford the price of their current health care plan without the income-based subsidies, while it expects 10,000 to be likely to purchase a plan with a new subsidy.

For the 31 states that did choose to expand Medicaid, the study’s projection is only slightly less dramatic. The companies expect federal funding for subsidies to drop by $635 million, or 65 percent, in the typical expansion state. The example envisions federal spending to drop from $965 million in these states to $330 million under an age-based system.

That would be the result of 110,000 existing enrollees in such a state to drop their coverage due to rising costs, and just 20,000 currently uninsured customers to buy a plan with the newly structured tax credit.

The study also noted that decreasing funding for states that expanded their Medicaid programs through Obamacare would likely lower enrollment in the low-income health care programs.

Kentucky Republican Gov. Matt Bevin, whose state did expand Medicaid, said after the Saturday meeting that he was not opposed to such large cuts. (RELATED: Kasich: GOP Should Side With Dems To Stop Conservatives)

“If [federal dollars for Obamacare spending] don’t actually exist, we can’t keep pretending there’s an endless supply of them saved up in a pot somewhere that will keep getting handed to us,” Bevin said, according to Axios.

Other governors have protested potential cuts in federal funding to their states under an Obamacare replacement. Ohio Republican Gov. John Kasich supports extending the Medicaid expansion in any Obamacare reform effort, suggesting the GOP should work with Democrats rather than conservatives that favor cuts to the program.

Follow Sarah on Twitter
Send tips to
Copyright 2017 Daily Caller News Foundation
Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact



Related posts


real money online casinos usa July 1, 2020 at 7:48 am

casino online usa

empire city casino online

online casinos real money July 5, 2020 at 12:19 pm


online casino real money us

online casino real money usa July 7, 2020 at 2:19 pm

real casino online

free slots

cialis buy July 9, 2020 at 11:16 pm

generic cialis online

tadalafil 40 mg

cash loan July 11, 2020 at 8:58 pm

cash loan

installment loans

installment loans July 15, 2020 at 1:47 am

loans online

instant loans

pay day loans July 18, 2020 at 4:32 am

payday loans

payday loans

viagra cost July 21, 2020 at 6:05 am

viagra for sale

viagra pills

cialis 5 mg July 23, 2020 at 8:39 pm

cialis buy

cialis generic

cialis generic July 26, 2020 at 7:49 pm

cialis internet

buy cialis

20 cialis July 28, 2020 at 3:45 am

cialis 5 mg

cialis internet

new cialis July 30, 2020 at 4:43 pm

20 cialis

cialis 5 mg

cialis 20 August 2, 2020 at 2:09 am

cialis 20

buy cialis

cialis buy August 5, 2020 at 2:18 am

cialis generic

20 cialis

sildenafil generic August 8, 2020 at 4:36 am

cheap viagra

viagra alternative

online slots August 10, 2020 at 5:22 pm

best online casino for money

best online casino usa

play casino August 11, 2020 at 10:36 am

slots real money

online slots for real money

hollywood casino August 15, 2020 at 9:44 am

casino online slots

casino games

real casino online August 19, 2020 at 7:13 am

best online casino real money

casino slot games

sildenafil 20 mg August 22, 2020 at 1:55 am

non prescription viagra

online viagra

generic viagra canada August 24, 2020 at 10:46 pm

canadian pharmacy viagra

canadian viagra

viagra online generic August 27, 2020 at 4:26 pm

viagra discount

what is viagra

tadalafil generic August 30, 2020 at 11:48 pm

tadalafil 10 mg

tadalafil dosage

buy cialis generic September 3, 2020 at 2:16 pm

cialis 10mg

tadalafil generic

generic cialis tadalafil 20 mg from india September 5, 2020 at 7:16 pm

buy generic cialis online

tadalafil 5 mg

cialis online pharmacy September 11, 2020 at 2:08 am

cialis online reviews

tadalafil generic

casino slot September 13, 2020 at 6:04 am

best casino online

online casino games for real money

online casinos real money September 16, 2020 at 4:59 pm

casino gambling

free slots online

Buy cheap viagra online us November 12, 2020 at 10:02 pm

Levitra or viagra

Free viagra samples

Leave a Comment