ALERT: USA: ACA Repeal & Replace Updates

Asinta Partner in the United States, Alliant, has provided us with the following information regarding proposed changes to the Affordable Care Act (ACA).

Leaked Budget Reconciliation Bill

In late February, a draft House budget reconciliation bill was leaked to the media. This draft bill was the most comprehensive Republican plan to date on repealing and replacing the ACA. This draft bill would eliminate all of the taxes that funded the ACA while providing additional tax credits to millions of additional individuals, but does not address the budgetary consequences of these provisions.

House Republicans Release ACA Repeal & Replace Legislation

Two ACA related bills were released in early March by the House Ways and Means Committee and the House Energy and Commerce Committee. Committee debates have already begun on these bills, with the intention to move to a full vote before the spring recess scheduled for April 7.

Together the two bills seem very similar to the draft proposal that was leaked in February. These new bills do not tax employer provided coverage, as previously proposed by the leaked draft bill. This provision was termed the Cadillac Tax, and would have been the only revenue generator included in the draft bill.

These two bills include a new phase out of subsidies to purchase health coverage on the individual market at a certain market threshold. This phase out of subsidies for higher wage earners is apparently intended to replace the elimation of the tax on employer coverage as the bills’ funding mechanism.

What’s Out:

  • Individual & Employer Shared Responsibility Penalities
  • ACA Taxes
  • Health FSAs
  • Cost Sharing Reductions in Exchange
  • Exchange Income-Based Subsidies
  • Medicaid
  • Essential Health Benefits

What’s In:

  • Dependent Coverage to Age 26
  • Prohibition on Pre-Existing Condition Exclusions
  • HSAs
  • Tax Credits
  • Individual and Small Group Enrollment Penalties
  • Cadillac Tax (Retained but delayed until 2025)

You can find the full versions of Alliant’s ACA Updates here: Leaked House Draft Bill & Republicans Release ACA Repeal & Replace Legislation

All of Alliant’s updates on the proposed changes to the ACA under the Trump Administration can be accessed via their hot topics page. Don’t forget to save the date for April 12, 2017! Alliant will be hosting an online webinar explaining all of the proposed updates to the ACA. Stay tuned for more information here.

To get your questions regarding employee benefits in th United States answered, please get in touch with Asinta Partner, Alliant, via their contact page.