Graham’s health-care repeal could be short-term boon for federal spending in SC

Critics of U.S. Sen. Lindsey Graham’s last-ditch plan to repeal the Affordable Care Act say his bill would cut the amount of money that the federal government spends on health care in most states. But two new studies show that wouldn’t be true in one state: South Carolina.

Health-care consultants Avalere said Wednesday the Seneca Republican’s proposal, co-sponsored by Louisiana GOP Sen. Bill Cassidy, could cut federal spending on health care by $215 billion by 2026, compared to the 2010 health reform law signed by then-President Barack Obama.

Only 16 states would see an increase in federal money under Graham-Cassidy’s formula.

One of them – South Carolina – is the lead sponsor’s home state. The Palmetto State would see a $3 billion increase in federal spending by 2026. A second study – released Thursday by the Kaiser Foundation – said South Carolina would get $4.5 billion more in federal money.

The bill envisions all federal money spent on the ACA – also known as “Obamacare” – going back to states as block grants. The states then would be able to spend the cash on their own preferred health programs.

Critics say Graham-Cassidy wouldn’t protect those with pre-existing medical conditions from huge increases in their health insurance costs. Graham disputes that.

No one disputes that the proposal would repeal the ACA’s expansion of Medicaid and restructure that program, giving states a fixed, capped amount for each resident. That funding change would be more favorable to states, including South Carolina, that didn’t expand Medicaid under Obamacare.

“The Graham-Cassidy bill would significantly reduce funding to states over the long term, particularly for states that have already expanded Medicaid,” said Caroline Pearson, senior vice president at Avalere.

By 2027, when the bill’s block-grant funding runs out, health-care funding could decline even more – by $498 billion. But 11 states still would end up ahead under Graham-Cassidy, including South Carolina, which would have $1 billion more to spend than under the current formula.

But the good times wouldn’t last for long.

By 2036, the consultants see all states losing money – $4.15 trillion nationwide – including South Carolina, which would be $31 billion poorer in terms of federal health spending, according to Avalere.

The Senate is expected to vote on Graham’s bill sometime in the coming week, but that could be in peril after Arizona Sen. John McCain – one of Graham’s closest friends in the Senate – announced Friday he would oppose the bill. That leaves Graham-Cassidy with a slim chance of winning enough votes to pass.

Next Saturday is the end of the federal budget year. That also is the deadline for Republicans to pass a bill using budget rules that would prevent Senate Democrats from filibustering the proposal to death.

Other candidates thinking about jumping in

More candidates are thinking about jumping into the 2018 elections.

Now it’s state Sen. Gerald Malloy, D-Darlington, who is considering launching a bid for governor.

“The Democrats need to have a viable candidate,” Malloy said. “Someone with experience needs to step forward.”

Malloy, an attorney, touts his work in the state Senate on a 2010 criminal justice overhaul that he credits with cutting the state’s prison population by 14 percent and saving taxpayers about $500 million. He also sponsored the law requiring police officers to wear body cameras after the 2014 shooting death of Walter Scott at the hands of a North Charleston police officer.

Malloy joins a handful of other potential Democratic candidates for governor.

▪  State Rep. James Smith, D-Richland, is taking steps to run, including opening a campaign account and launching a website.

▪  State Rep. Justin Bamberg, D-Bamberg, also publicly has considered a run. But Bamberg also has said he will not run if Smith does.

▪  Former state Democratic Party chairman Jaime Harrison thought about launching a bid before deciding against it.

For all the consideration, the state’s minority party does not have a declared candidate for governor.

Four Republicans are running for governor. In addition to Gov. Henry McMaster, Lt. Gov. Kevin Bryant, former Lt. Gov. Yancey McGill and Charleston attorney Catherine Templeton are running in the GOP primary.

Democrat considering another run in 5th District

Former congressional candidate Archie Parnell is considering another run in the 5th District, after a surprisingly close, 3-point loss to Republican Ralph Norman in a 2017 special election.

The former financial adviser, who lives in Sumter, says he gets encouragement to run again when he goes grocery shopping.

“It’s happened at least three times in the exact same spot,” the Democrat said. “I’ll be looking at the potato chips, and someone will come up and say, ‘You should run again.’

“I guess I just study the potato chips too long.”

This week at the State House

▪  The House Oversight Committee will meet at 10 a.m. Monday to discuss a study of the Department of Natural Resources.

▪  The House’s “utility ratepayer protection” committee will meet at 10:30 a.m. Tuesday to hear testimony about the failed effort by SCE&G and Santee Cooper to expand the V.C. Summer nuclear plant.

▪  The Senate committee overseeing the Department of Social Services will meet at 11 a.m. Tuesday.

▪  The House’s tax policy review committee, which is considering how to reform the state’s taxes, will meet at 10:30 a.m. Wednesday.

▪  A joint House-Senate sentencing reform committee will meet at 10 a.m. Thursday.

This story was originally published September 22, 2017 at 2:33 PM with the headline "Graham’s health-care repeal could be short-term boon for federal spending in SC."