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S&P: Graham-Cassidy bill would cost 580K jobs

S&P: Graham-Cassidy bill would cost 580K jobs
© Greg Nash

The latest ObamaCare repeal bill would hurt the economy and reduce coverage levels, according to a new report released Monday. 

The S&P Global Ratings report found that the bill, sponsored by GOP Sens. Lindsey GrahamLindsey Olin GrahamDems walk tightrope on Pompeo nomination Senate panel moving ahead with Mueller bill despite McConnell opposition Overnight Defense: Lawmakers worry over Syria strategy | Trump's base critical of strikes | Flake undecided on Pompeo | Coast Guard plans to keep allowing transgender members | GOP chair wants to cut B from Pentagon agencies MORE (S.C.) and Bill CassidyWilliam (Bill) Morgan CassidyRepublicans have a long way to go toward fully repealing ObamaCare Senators press administration on mental health parity Longer sentences won’t stop the opioid epidemic MORE (La.), would reduce coverage levels among those making between 133 percent and 400 percent of the federal poverty line, or between $16,040 and $48,240 for an individual. 

Some eligible for the traditional Medicaid program may also lose coverage, S&P says.

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The ratings agency also found the bill could cost about 580,000 jobs and $240 billion in lost economic activity by 2027 while limiting the gross domestic product growth to about 2 percent a year over the next decade. 

The bill would end ObamaCare’s expansion of Medicaid and repeal much of the law, replacing it with block-grant funding for states. Some states, typically those that didn’t expand Medicaid, would get more funding, while others would get less. 

S&P said this increased flexibility comes with "fewer federal dollars, creating increased fiscal and operational burdens on the states." 

The bill could also cause disparity among states in terms of rules for insurance markets and uninsured levels, the report says. 

The Graham-Cassidy repeal bill faces a very narrow path. Republican Sens. Rand PaulRandal (Rand) Howard PaulHeitkamp becomes first Dem to back Pompeo for secretary of State Senate committee sets Monday vote even as Pompeo appears to lack support Trump checkmates Democrats in sending Pompeo to North Korea MORE (Ky.) and John McCainJohn Sidney McCainHeitkamp becomes first Dem to back Pompeo for secretary of State Senate committee sets Monday vote even as Pompeo appears to lack support Trump checkmates Democrats in sending Pompeo to North Korea MORE (Ariz.) have already come out against it. A third GOP "no" vote would sink the legislation.

Cassidy, a medical doctor, and Graham are set to defend their bill during a CNN town hall-style event on Monday night.