In efforts to overhaul the nation’s health system, House Republicans Thursday narrowly passed legislation that would repeal and replace major parts of the Affordable Care Act.
Only four votes separated the yeses from the opposition with the final numbers coming in at 217 to 213. The narrow margin was considered a victory for GOP leaders, though, who faced a turbulent path actually getting the bill to the floor. If you remember, back in March, the measure was pulled because of lack of votes. Twenty Republicans actually voted against the bill.
Introducing the American Health Care Act
The bill is being called the American Health Care Act and it repeals the core elements of Obamacare, including its subsidies to help people get insurance coverage, the expansion of Medicaid, taxes and mandates for people to get coverage.
The bill will provide a new tax credit aimed at helping people buy insurance, but would roll back state-by-state expansions of Medicaid which had covered millions of to low-income people under Obamacare.
Another thing the bill would do is eliminate tax penalties for people who go without health insurance.
According to the nonpartisan Congressional Budget Office, 24 million more people will become uninsured over the next decade because of the bill.
The bill is expected to undergo a major overhaul in the Senate, especially when it comes to Medicaid. Some are saying the path in the Senate will be tough given that Republicans can only afford the loss of two votes to still pass the bill.
Also of note for employers
Enhancements are coming for health savings accounts (HSAs). New limits have been released for what employees can contribute. Click here to read the full publication from the IRS that includes all the updated contribution limits.
ACA reporting has not been repealed. Any adjustments to that would have to come in a different legislation.
Stay with PrimePay as we continue to provide updates to this developing story. And don’t forget to check out our ACA Compliance Navigator to help you stay compliant, no matter what happens.