State could face $30B in new costs under BCRA

A new analysis from the California Department of Health Care Services and the Department of Finance finds that California could face more than $30 billion annually in additional health care costs over the next decade under the Senate proposal to repeal and replace the Affordable Care Act. The Senate bill, called the Better Care Reconciliation Act (BCRA), would increase state costs even more than the $24.3 billion estimate under the House’s American Health Care Act proposal. DHCS concludes that over the seven-year period of 2020-27, BCRA shifts $92.4 billion in cumulative costs from the federal government to California.

The Senate postponed its vote on the BCRA proposal prior to the July 4 holiday recess due to a lack of support for the bill. At the time of this writing, negotiations are still underway.

CDA remains concerned about these implications to Medicaid and the existing consumer protections that may be threatened by both Congressional proposals. CDA continues to raise these concerns directly with federal policymakers and is monitoring the negotiations. A comparative chart below outlines the current proposals and the implications nationally.

Three versions of health care: How do they compare?

For more information regarding ACA reform efforts, please visit cda.org or contact CDA Public Affairs at 916.554.4984.

Related Items

As California’s new fiscal year starts, dentists can expect significant reimbursement increases for hundreds of procedures covered by Denti-Cal because of the passage of CDA-sponsored and supported Proposition 56, the tobacco tax measure. With anticipated federal participation, it is expected that an estimated $300 million in additional funding will be committed to increasing coverage for dental care in the program.

The House of Representatives’ vote May 4 to approve the American Health Care Act is the first step down a long, winding road of a possible repeal or replacement of the Affordable Care Act. CDA and other health care organizations have expressed their concerns to policymakers that the AHCA would harm Californians due to the erosion of pre-existing condition protections, decrease patient access to physicians and dentists and cause over 3 million Californians to lose health care coverage.