A sobering report to governors about the potential consequences of repealing the Obama-era health care law warns that federal spending cuts probably would create funding gaps for states and threaten many people with the loss of insurance coverage. The federal-state program for low-income people covers more than 70 million Americans, many of whom have high health care needs. Hospitals, which benefit from Medicaid coverage, are big employers in local communities. In addition, the private insurance subsidies provided under Obama's law would also be scaled back, according to the report. Although states would get some additional safety-net funding, reductions in federal insurance subsidies would expose some consumers to new costs for their coverage.

Source: ABC News February 26, 2017 14:38 UTC