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URGENT: House Repeals and Replaces ACA

On May 4, the House of Representative passed legislation to repeal and replace the Affordable Care Act. We are reviewing the bill carefully and this blog post will be the first of many updates about the bill and its potential implications for clients.


Here are some of the key provisions of the House bill:


  • Repeal the employer mandate requiring employers to provide employees with affordable coverage or pay an excise tax.


  • Repeal the individual mandate requiring individuals to maintain health insurance coverage or pay an excise tax.


  • Replace the subsidies provided under the ACA, for those under 400 percent of the federal poverty level, to pay for insurance premiums and out-of-pocket expenses. These subsidies will be replaced with age-based tax credits.


  • Repeal the tax increases contained in the ACA, including the tax on high-cost (“Cadillac”) plans, increased payroll tax, and tax on investment income for high income individuals.


  • Allow carriers to charge higher premiums based on age and health status.


  • Modify rules regarding “essential health benefits” that must be covered by individual and small group plans.


The bill now heads to the Senate, where significant changes are likely.


Health care represents almost one-fifth of the U.S. economy and this bill represents significant changes to this complex system. We will continue to keep our clients up-to-date on the latest developments on this vital topic.