House Republicans have unveiled a repeal and replacement plan for the Affordable Care Act (ACA). The GOP’s American Health Care Act (ACHA) would eliminate most of the ACA’s taxes, including penalties connected with individual and employer mandates, the net investment income (NII) tax and the Additional Medicare tax. Left in place, although delayed, would be the excise tax on high dollar health plans. Also left in place, would be a number of non-tax provisions related to scope of coverage, benefits and children- including allowing dependents to continue to stay on their parents’ plan until the age of 26, prohibiting health insurers from denying coverage or raising rates to patients based on pre-existing conditions, and forbidding life-time limits on insurance coverage.
The House GOP plan has been rejected by Democrats. Some Republicans have said the plan does not go far enough in repealing all of the ACA. As March moves forward, a vote on the house floor is eventually expected.
To read the impact of the ACA changes, new age-based credits, repeal of NII tax, expanded HSA and other topics, click the link for a detailed read from CCH and Wolters Kluwer. CCH Tax Briefing – ACA Repeal and Replacement (3-9-17)