WASHINGTON – Last week the House of Representatives passed the American Health Care Act (AHCA), legislation seeks to repeal the Obama administration’s Affordable Care Act. The Hill writes that the narrow 217-213 vote “is a victory for GOP leaders, who faced a tumultuous path to getting the bill to the floor.”
In March, House leadership pulled the ACHA from the schedule because it lacked the necessary votes for passage and failed to earn support from the conservative Freedom Caucus members of Congress. Since then, Republicans worked on “a series of deals” and adjustments to the measure that would satisfy the caucus members.
According to an analysis from NACS counsel, Steptoe & Johnson LLP, the most notable provision of the AHCA is the elimination of the individual and employer mandates by making the penalties $0 for tax years starting after December 31, 2015. The bill also repeals ACA taxes and fees (among others) beginning in 2017, including the annual provider fee; net investment income tax; prescription drug tax; and medical device tax.
The “Cadillac Tax,” a 40% excise tax on employers’ plans that cost more than $10,200 for individuals and $27,500 for families, is eliminated beginning in 2020 through 2025 under the ACHA, leaving the possibility that the tax could be imposed in 2026.
For more specifics on the AHCA, NACS members can access the memorandum from NACS Counsel here.
For those with pre-existing medical conditions, the Wall Street Journal reports that the ACHA “is a mixed bag,” noting that insurers would remain barred from denying coverage to people with health problems. However, in states that obtain federal waivers, insurers could charge people with pre-existing conditions higher premiums for about a year if they have a gap in coverage. States would also be required to set up programs that help these people obtain coverage.
The Journal notes that a last-minute amendment added to the ACHA would provide $8 billion over five years to help people with pre-existing medical conditions pay for health expenses like out-of-pocket costs.
The AHCA now moves to the Senate for consideration.