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Republican healthcare bill would harm state finances: Moody's

Republican healthcare bill would harm state finances: Moody's
From Reuters - March 17, 2017

SAN FRANCISCO The Republican-proposed bill to replace Obamacare would be a credit negative for U.S. states, according to Moody's Investors Service, because it would shift a greater share of the cost of Medicaid to the states.

The bill, known as the American Health Care Act, aims to replace the Affordable Care Act, commonly known as Obamacare.

The bill proposes to shift federal funding for Medicaid, the government insurance program for the poor, from a state-match to a per capita cap, resulting in a greater financial burden on states, Moody's reported.

The proposal would also phase out funding for expanded Medicaid by 2020, leaving states to pick up the difference or to drop enrollees from their Medicaid programs.

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