Summary of the American Health Care Act Bill to Repeal PPACA

The AHCA marks the beginning of the process of repealing PPACA. Although House Republicans plan to move quickly on the AHCA, passage of the bill is not guaranteed. The process from bill to law can be long, arduous, and involve numerous roadblocks. As such, we caution you stay tuned for more as the flurry of activity surrounding healthcare reform continues.

Highlights of some possible changes are listed below:

  • Effectively eliminates the Employer Mandate by reducing the penalty to zero for applicable large employers effective January 1, 2016.
  • Effectively eliminates the Individual Mandate by reducing the penalty to zero for failing to maintain minimum essential coverage effective January 1, 2016.
  • Delays the effective date of the 40% Cadillac tax on high cost employer-sponsored health coverage to 2025.
  • Increases the maximum limit on annual Health Savings Account (“HSA”) contributions starting in 2018 to equal the sum of the annual deductible and out-of-pocket expenses permitted under a qualifying high deductible health plan.
  • Repeals the limit on health FSA contributions effective January 1, 2018.
  • Repeals the exclusion of over-the-counter medications as qualified medical expenses under HSAs, health FSAs, and Health Reimbursement Arrangements (“HRAs”) effective January 1, 2018.
  • Allows for a pre-existing condition surcharge on premiums for individuals that have a break in coverage of more than 63 days.
  • Repeals the health insurer tax beginning in 2018 (Note: as a result of previously enacted legislation, the tax is not being collected in 2017).
  • Rolls back the PPACA expansion of Medicaid effective January 2020.

You can read the full article summarizing all the provisions of the AHCA HERE.