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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 GrahamOvernight Defense: Biden sends message with Syria airstrike | US intel points to Saudi crown prince in Khashoggi killing | Pentagon launches civilian-led sexual assault commission Graham: Trump will 'be helpful' to all Senate GOP incumbents John Boehner tells Cruz to 'go f--- yourself' in unscripted audiobook asides: report MORE (S.C.) and Bill CassidyBill CassidyRepublicans see Becerra as next target in confirmation wars Overnight Health Care: Johnson & Johnson vaccine safe, effective in FDA analysis | 3-4 million doses coming next week | White House to send out 25 million masks Koch-backed group launches ads urging lawmakers to reject COVID-19 relief bill 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 PaulOvernight Health Care: 50 million coronavirus vaccines given | Pfizer news | Biden health nominees Rand Paul criticized for questioning of transgender health nominee Haley isolated after Trump fallout MORE (Ky.) and John McCainJohn Sidney McCainCindy McCain planning 'intimate memoir' of life with John McCain Trump-McConnell rift divides GOP donors Arkansas state senator says he's leaving Republican Party 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.