U.S. House Narrowly Passes AHCA Bill
On May 4, 2017 the U.S. House of Representatives narrowly passed the American Health Care Act (AHCA) by a vote of 217 to 213. Every House Democrat and 20 House Republicans opposed the measure.
The AHCA was given new life after language intended to bolster high-risk pools to cover preexisting conditions was negotiated by Congressmen Fred Upton (R-MI) and Billy Long (R-MO) yesterday.
Following is a basic run-down of the AHCA:
- The bill eliminates the employer and employee mandates
- Replaces the ACA's income-based subsidies with tiered tax credits, gradually increasing for older Americans
- Allows states to apply for waivers to define their own essential health benefit requirements
- Expands the limits for Health Savings Accounts
- Discontinues Medicaid expansion in 2020
- Repeals most of the ACA's taxes
Additionally, the legislation would delay implementation of the Cadillac Tax by five years, from 2020 to 2025, and it importantly preserves the tax exclusion for employer sponsored insurance.
Click here for side by side comparison of the ACHA and the ACA.
What's next? The Bill now heads to Senate though its fate is unclear. IPS Advisors will continue to keep you apprised of developments as they occur.
Source: The Council of Insurance Agents & Brokers and their legal team Steptoe & Johnson.
The information provided is for educational purposes only. This information is from sources we believe to be reliable, but we cannot guarantee or represent that it is accurate or complete. The opinions are those of the writer, and the opinions and information presented are subject to change without notice.