House Republicans Release ACA Replacement Legislation

13 March 2017 By Barry E. Fields

As you may have heard, on March 6th the U.S. House of Representatives issued two bills to repeal and replace the Affordable Care Act (ACA).  The two bills are referred to as the “American Health Care Act”.  Debate on this legislation is scheduled to begin this week.  If passed, the new law would not repeal the ACA in its entirety, but would make several key changes.  Attached is a detailed overview of the proposed changes as well as the provisions that will not be impacted.

The most important changes that will impact you and your employees are the following:
§  The employer mandate and the individual mandate would effectively be repealed retroactive to December 31, 2015 by reducing penalties imposed under these provisions to zero ($0).
§  Increases the maximum HSA contribution limit to at least $6,550 for self-only coverage and $13,100 for family coverage.
§  Postpones the Cadillac Tax until January 1, 2025.
§  The ACA limits the amount an individual may contribute to a health FSA to $2,500 (adjusted each year – currently $2,650).  The new law would repeal the limitation on contributions for taxable years beginning after December 31, 2017.
§  Continues the subsidies for individual coverage but changes the qualifications, the amounts and how it is administered.

Most of the other provisions would remain the same or comparable, such as:
§  Continuation of the tax exclusion for employer provided plans
§  Requirement to complete the Employer Reporting (e.g. Form 1094/1095)
§  Prohibition on lifetime and annual limits for Essential Health Benefits
§  Requirements to cover pre-existing conditions
§  Coverage for adult children up to age 26
We have a long way to go through the legislative process before this bill can become law.  We will continue to monitor the developments of this fluid situation and communicate updates as this progresses.

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

Last modified on Monday, 13 March 2017 21:01

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