The Graham-Cassidy insurance repeal bill is a piece of work, intentionally stripping health funding in Democratic-led states and handing it over to Republican-led ones in an effort to hide some of the damage the bill will be doing to those Republican states. This is to give cover to Republican senators voting for it despite the damage it will do.
But that's nothing compared to the carve-out specifically for Alaska.
On Tuesday evening, Robert VerBruggen of National Review noticed something odd: The financial projections produced by Sen. Bill Cassidy's office showed that, in 2026, his healthcare proposal would award each state almost precisely $4,400 in federal subsidy per "eligible beneficiary" — except Alaska, which would receive $6,500, or 48% more than everybody else.
When reporter Josh Barro asked about it, noting that there was no apparent language in the bill that would explain special treatment for Alaska, the document came down, with the excuse that the numbers were being "revised"—but with an affirmation that there will be a special carve-out for Alaska. And maybe North Dakota. It's a complete mystery.
Why the Alaska payout was (is?) there, however, is no mystery. It's there because Alaska, a mostly rural state with very high healthcare costs, will be particularly screwed by the Republican bill. It will be painful indeed, and that's why the Alaskan governor is blasting the bill and why would-be moderate Senator Lisa Murkowski is waffling mightily on it. The intent of the payout is to buy Lisa Murkowski's support.
It will only work if Murkowski is more devoted to the Republican Party to her own voters, because even with the payout Alaskans themselves will suffer from steep spending cuts. It's a fig leaf for Murkowski to use to say she "tried her best" to screw her own voters, but none of the Alaskans losing their health insurance or struggling with rural hospital closures are likely to believe her.
As for Sen. Graham, he seems to be now hinting that Murkowski indeed took the bait. He’s claiming there will be a vote on the bill “next week”—but since Senate Majority Leader McConnell has vowed he won’t bring it up unless Graham and Cassidy can deliver 50 votes, that means Graham is convinced either Murkowski or Sen. John McCain is now in his camp.
Thought Obamacare was safe? Think again. Republicans have revived their repeal effort and we must stop them. Keep calling your senators at (202) 224-3121 and tell them DON’T REPEAL OBAMACARE! (After you call, please tell us how it went.)