March 17, 2017 / 5:28 PM / 5 months ago

BRIEF-Moody's says proposed AHCA would be credit negative for U.S. states sector

March 17 (Reuters) - Moody's on proposed AHCA :

* Moody's - proposed American Health Care Act would be credit negative for U.S. states sector

* Legislation phases out current funding model for medicaid expansion program,cuts federal reimbursements for new enrollees from 2020

* Moody's - AHCA's credit negative for US states because it creates new medicaid cost-sharing formula that shifts greater share of medicaid expenditures to states

* Proposed cost shift to states would increase projected medicaid expenditure growth for states over coming decade

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