You are here

Graham Cassidy Heller Johnson (GCHJ) Healthcare Bill

Sep 20, 2017

On September 13, U.S. Senators Lindsay Graham (R-SC), Bill Cassidy (R-LA), Dean Heller (R-NV), Ron Johnson (R-WI), and former Senator Rick Santorum introduced legislation to make reforms to the U.S. healthcare system.

The Senate Finance Committee held a hearing on Monday September 25. Lacking the votes to pass the bill, it was not brought to a vote by full Senate.

Our View


Here's how the bill affects key aspects of the Affordable Care Act (from Kaiser Family Foundation):

  • Market-based Health Care Grant Program- this new program provides $1.167 trillion in block grants over seven years and replaces funding for subsidies and Medicaid expansion.
  • Market Rules
    • State waivers- allowed for premium rating (including health status rating), Essential Health Benefits, and Medical Loss Ratio rebates with respect to block grant funds.
    • Pre-existing Conditions and Ban on Annual and Lifetime LimitsNot changed federally but state waivers may affect covered benefits and costs.  
    • Young adults- can still stay on their parents' health insurance until age 26.  
  • Medicaid
    • Expansion fundingRolls back enhanced federal matching funds for states that expanded Medicaid.
    • Medicaid Funding- replaces federal matching funds with a per capita cap per beneficiary and inflationary adjustments.
    • Planned Parenthood- one year Medicaid funding freeze.
  • Taxes and Tax Incentives 
    • Premium and cost sharing subsidies- phased out by 2020
    • Individual and employer mandates - eliminated
    • Health Savings Accounts- increases the limit on pre-tax contributions
    • Medical Device Tax- repealed
  • Short-term Funding
    • Community Health Centers$422 million in supplemental funding in FY 2017
    • Reinsurance ($25 billion)
    • Reimbursement of insurers for losses ($155 billion),  
  • Medicare- no changes to benefit enhancements or Medicare Advantage Plan payments