May 5, 2017-Legislative Alert
TheAmerican Health Care Act (AHCA) Passes the U.S. House
Yesterday, the U.S. House of Representatives passed an amended version of the American Health Care Act (AHCA) by a vote of 217-213. House Republicans crafted the AHCA as a budget reconciliation bill to repeal parts of the Affordable Care Act (ACA). The bill was previously debated on the House floor, but pulled before a full vote on March 24. Since that time, several amendments were added to the bill, paving the way for Republican leadership to reintroduce the bill for a successful vote.
AHCA Highlights
While it’s likely the AHCA will be modified in the Senate, these are the current main impacts to the ACA.
- Repeals individual and employer mandate penalties
- Ends enhanced funding for Medicaid expansion
- Expands the individual market age rating band
- Replaces income-based subsidies with age-based tax credits
- Repeals most fees and taxes, but maintains the Cadillac Tax, which would
be delayed until 2026 - Allows state waivers to:
- Define Essential Health Benefits
- Vary premiums by health status
- Increase age band ratios
- Establishes a Patient and State Stability Fund
Passage of the bill in the House marks a milestone in the Republican efforts to repeal and replace the ACA; however, the bill will face new challenges in the Senate. Official guidance has not been provided at this time.
As a reminder, ACA compliance is required until official guidance to the contrary is issued. The House passage of the AHCA is the first of several required steps before any official changes are enacted.
Sorry, comments are closed for this post.