American Health Care Act Passes the U.S. House

On May 4, 2017, members of the U.S. House of Representatives voted 217-213 to pass the American Health Care Act (AHCA), the proposed legislation to repeal and replace the Affordable Care Act (ACA).

The AHCA will now move on to be considered by the Senate. It is likely the Senate will make changes to the proposed legislation before taking a vote, and if it passes the Senate, the AHCA will then go to President Donald Trump to be signed into law. Until then, the ACA remains intact and employers should continue business as usual.

In the meantime, here are some of the notable changes proposed by the bill as well as ACA provisions that will not be impacted.

Notable Changes Proposed by the AHCA Bill

• Repealing employer and individual mandates
• Replacing health insurance subsidies with monthly tax credits used to purchase individual health insurance coverage
• Adding an option for states to apply for waivers to define their own essential health benefit (EHB) requirements
• Increasing the Health Savings Account (HSA) contribution limit to the maximum out-of-pocket limits allowed by law (at least $6,550 for self-only coverage and $13,100 for family coverage, beginning in 2018)
• Providing relief from ACA tax provisions, including a delay of the Cadillac tax from 2020 to 2025
• Repealing the ACA’s Medicaid expansion

Notable ACA Provisions Not Impacted

• Requirements to cover pre-existing conditions
• Coverage for adult children up to age 26
• Tax exclusion for employer sponsored insurance

 
For a complete summary of the American Health Care Act, download and read the full compliance bulletin below. If you have any questions, please contact your North Risk Partners advisor.
 
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This regulatory update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.