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 GrahamGOP divide in Congress over Rosenstein's future Sanders: Kavanaugh accusers 'have risked their lives to come forward' Rosenstein fiasco raises the stakes in midterms for DOJ’s future MORE (S.C.) and Bill CassidyWilliam (Bill) Morgan CassidyOvernight Health Care: Bill banning 'gag clauses' on drugs heads to Trump's desk | Romney opposes Utah Medicaid expansion | GOP candidate under fire over ad on pre-existing conditions Overnight Health Care: GOP plays defense over pre-existing conditions | Groups furious over new Trump immigration proposal | Public health advocates decry funding transfer over migrant children Overnight Health Care: Opioids package nears finish line | Measure to help drug companies draws ire | Maryland ObamaCare rates to drop 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 PaulA Senator Gary Johnson could be good not just for Libertarians, but for the Senate too Conservatives left frustrated as Congress passes big spending bills Senate approves 4B spending bill MORE (Ky.) and John McCainJohn Sidney McCainUpcoming Kavanaugh hearing: Truth or consequences How the Trump tax law passed: Dealing with a health care hangover Kavanaugh’s fate rests with Sen. Collins 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.