Heritage Explains 012: Graham-Cassidy Bill Is a Step in the Right Direction

The Senate faces a September 30, 2017, deadline to use budget reconciliation to repeal Obamacare this year. In the wake of the Senate’s recent failure to repeal and replace Obamacare, Senators Lindsey Graham (R–SC) and Bill Cassidy (R–LA) have released an updated version of their bill in a renewed effort to take advantage of this expiring legislative vehicle. Like others considered this year, Graham–Cassidy falls short of fully repealing Obamacare and replacing it with a new patient-centered system, but it does include significant improvements over current law by repealing the individual and employer mandate tax penalties, providing Medicaid reform, and empowering states to design health care subsidies and insurance rules that work for their residents. The Senate should also ensure that the bill is changed to support the goal stated in the legislative text: creating a “market-based healthcare grant program.” Even with the changes recommended here, it is important to remember that this bill would be only a first step in the long-term effort necessary to achieve a truly patient-centered health care system.