The House has released their latest version of legislation to repeal and replace the ACA. It ends up being more of a redesign with some good news and some not so good news. Please keep in mind this does NOT change the current ACA law.
Good News If Legislation Becomes Law:
- Repeals the individual and employer mandates.
- Does NOT include changes to the tax exclusion for employer provided plans
- Delays the Cadillac tax until 2025
- Several taxes contained in the ACA would be repealed at the end of 2017
- Employer-sponsored plans would include preventive care and children to age 26
- No lifetime limits
- No preexisting condition
Not So Good News:
- Employer reporting requirements (1095-C/1094-C) would have to be streamlined or eliminated through regulatory procedures. These legislative changes will not meet the reconciliation requirements in the Senate.
- Tax credits reduced for individuals with incomes above $75,000 and households earning more than $150,000. The tax credits would disappear completely for individuals making more than $215,000, with a $290,000 cap for joint filers.
- Phases out the ACA’s Medicaid expansion. States would get capped payments based on Medicaid enrollment, but the inflation calculator slows spending growth in future years.
- Allows insurers to charge a 30% penalty to individuals who let their insurance lapse, and then try to buy a new policy.
We are left with many questions right now, especially, what will happen to the other ACA provisions, such as:
- W-2 Reporting
- Notice of Exchange
- Medical Loss Ratio (MLR) Rebates
The bill will likely go through many revisions and challenges before it becomes final; furthermore, it will need approval by the House and Senate before it goes to President Trump for his signature. Members of the House are expected to start voting on parts of the bill Wednesday.