JGS Insurance Alert - House Passes "Repeal and Replace"

09 May 2017 By Barry E. Fields

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On May 4, 2017, members of the U.S. House of Representatives voted 217-213 to pass the American Health Care Act (AHCA), after it had been amended several times. The AHCA is the proposed legislation to repeal and replace the Affordable Care Act (ACA).

The AHCA needed 216 votes to pass in the House. Ultimately, it passed on a party-line vote, with 217 Republicans and no Democrats voting in favor of the legislation. The AHCA will now move on to be considered by the Senate. It is likely that the Senate will make changes to the proposed legislation before taking a vote. The AHCA would only need a simple majority vote in the Senate to pass. However, unless and until the AHCA is passed by the Senate and signed by President Trump, the ACA will remain intact.

While it’s likely the AHCA will be modified in the Senate, these are the current main impacts to the ACA:

  • The bill eliminates the employer and employee mandates by “zeroing out” the penalty;
  • Replaces the ACA’s income-based subsidies with tiered tax credits, gradually increasing by age;
  • 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; and
  • Repeals most of the ACA’s taxes (note: the Cadillac Tax would be delayed five years, from 2020 to 2025)


Although the passage by the House is a big first step, there’s still a long road ahead before anything reaches the President’s desk - negotiations with the Senate could be very difficult.

We will continue to keep you informed about any future developments. In the meantime, please let me know if you have any questions.

JGS Insurance - House Passes Repeal Measure.pdf


Barry E. Fields
Vice President, Employee Benefits
JGS Insurance
960 Holmdel Road, Bldg. 1
Holmdel, NJ 07733
Phone:  732-837-1068
Cell:  908-406-7000
Fax:  732-834-0233

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Last modified on Thursday, 11 May 2017 17:09

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