BREAKING NEWS – House Passes the American Health Care Act

Date: May 4, 2017
By: Basi Insurance
In: ,

About an hour ago, the House of Representatives passed H.R. 1628, the American Health Care Act, by a narrow 217 (Republican) v. 213 (Democratic) votes.

The AHCA is the bill that repeals and/or reforms multiple provisions of the Affordable Care Act (“ACA”), including all of the following:

  • “PAY OR PLAY” MANDATE:  Repealed as of 1/1/2016.
  • ACA REPORTING:  partial repeal of Employer reporting requirements for ALEs (IRC 6056 as of 1/1/16), but retains reporting on offer of MEC coverage (IRC 6055).
  • INDIVIDUAL MANDATE PENALTY:  Repealed and replaced with a 30% surcharge on premiums when individuals experience a break in coverage greater than 63 days within a 12-month period.
  • INSURANCE MARKETPLACES/EXCHANGES: Modifies rating methodologies from a 3:1 to a 5:1 ratio; modifies the provision of subsidies to individuals in exchanges as of 1/1/2019.
  • MEDICAID EXPANSION: Repeals expansion as of 2020 and grants states discretion ability to establish eligibility criteria for Medicaid eligibility.
  • MARKET REFORM CHANGES:  Provides state discretion to define essential health benefits as of 1/1/2020 and allows for the creation of high-risk pools for individuals with chronic conditions , prohibits pre-existing condition exclusions.
  • REPEALS MYRIAD OF ACA TAXES: PCORI, Health Insurance Tax, Exchange surcharge in small group coverage, medical device manufacturer tax, annual limits on health FSAs, Medicare taxes for high-income earners, etc.
  • CADILLAC TAX PLAN:  Delayed until 2026.

We are continuing to review the details of H.R.1628 and the impact to our clients. If you have any questions, contact us at 209-847-3065.

Recent Posts

We want you to know how to protect yourself, your family, and your businesses. Follow our blog for helpful tips, industry news, insight into current events, and more.

Doctor with patient

Covered CA Announces Big Changes for Coming Year – 2020

Covered CA Logo Another  year, another open enrollment for health insurance. Big changes expected to ...
Farm Equipment in field

Is your Labor Contractor an Employee?

The California Supreme Court has issued a major decision that dramatically restricts the ability of ...
lock and credit cards

Cyber Coverage – Why you absolutely need it!

WHY CYBER COVERAGE? 1 Cyber crime is the fastest growing crime in the world, but ...