Here we go switching acronyms again…and just when we figure out what the first one means!Looks like we may go from ACA (Affordable Care Act, a.k.a. Obamacare) to AHCA (The American Health Care Act, a.k.a. Trumpcare.  I wonder if we will have massive healthcare reform with every new U.S. President?  House Republicans have introduced two different bills designed to repeal and replace the Affordable Care Act (ACA).  This is draft legislation, but it provides a strong indication of the policy direction Congressional Republicans favor.

AHCA Highlights

While the AHCA may be amended before passage, these are the current main impacts to the ACA:

Repeals individual and employer mandate penalties retroactive to Jan. 1, 2016.  This means no fines to individuals choosing not to be covered by health insurance, and no fines to employers who choose not to offer health insurance as an employee benefit.

Expands the individual market age rating band from 3:1 to 5:1.  Basically, this means insurance companies can charge higher premiums for older people.

Replaces current income-based subsidies with age-based tax credits beginning in 2020

Repeals most fees and taxes, but maintains Cadillac Tax, which would be delayed until 2025

Ends enhanced funding for Medicaid expansion by end of 2019, then transitions to a state block grant system

Makes changes to Health Savings Accounts and Flexible Savings Accounts (increased limits / pretax purchasing of Over-the-Counter medicine and drugs permitted again)

This will be an interesting ride.  Stay tuned for more information!

Source:  Cigna, Informed on Reform, 13 March 2017