Health Care Reform Information Center
The 2016 election results have thrown the future of the Affordable Care Act into murky territory. Given that, we have archived all our old ACA information here, and will be updating a new set of resources for you moving forward.
This information is updated frequently and will continue to evolve. We will keep you posted of significant developments as they occur. If you have any questions on these materials, please contact Joel Kopperud at email@example.com.
In early January 2016, Republicans attempted to use the budget reconciliation process to dismantle the Affordable Care Act. On January 8, 2016, President Obama vetoed the bill. The Republicans’ bill, HR 3762: Restoring Americans Health Care Freedom Reconciliation Act of 2015, repeals many key components of the ACA including: government-run exchanges, employer and individual mandate, medical device tax and the Cadillac tax. It also phases out Medicaid expansion over a two-year period. President-elect Trump has repeatedly stated that his top priority will be a quick and full repeal of the ACA. The repeal bill will likely build on the repeal legislation from January 2016. You can read a summary of that bill here and see it in it's entirety here.
It is not clear yet what exactly the replacement for the ACA will look like. There have been multiple repeal efforts by both House and Senate Republicans followed by both legislation and road maps for an ACA replacement bill.
As part of his broader tax reform plan, A Better Way, Speaker Ryan has released a blueprint for a healthcare reform bill. This blueprint would cap the tax exemption on employer-provided benefits at “a level that would ensure job-based coverage continues unchanged for the vast majority of health insurance plans,” thus taxing the most robust plans. The tax would be adjusted for factors including cost of living. HSA contributions made on a pre-tax basis will NOT be counted toward the cost of coverage for purposes of the cap.
President-elect Trump has nominated Rep. Tom Price (R-GA) as Secretary of Health and Human Services. Rep. Price has been active in creating replacement legislation. In 2015, Rep. Price, along with Sens. John McCain (R-AZ) and David Perdue (R-GA), introduced HR 2300: Empowering Patients Act. This plan would cap the tax exclusion for employer-provided benefits, allowing for an exclusions of health coverage of $20,000 for a family and $8,000 for an individual, with any additional funds used to be taxable dollars. The plan also expands HSAs and provides a universal tax credit for individuals purchasing coverage on the individual market.
In 2015, Rep. Fred Upton (R-MI) and Sens. Orrin Hatch (R-UT) and Richard Burr (R-NC) released an alternative replacement plan entitled, The Patient Choice, Affordability, Responsibility and Empowerment Act. This plan would cap the tax exclusion for employer-provided benefits at $30,000 for a family and $12,000 for an individual, with any additional health benefits to be considered taxable income subject to the regular income tax for that employee. The plan also expands HSAs and reforms Medicaid.
We anticipate that you'll see many more plans put forward in the near future and we'll try to summarize them here.
To see the National Journal's webinar slides on the future of the ACA, please click here.
Coalition Letter to Members of Congress to Urge the Importance of Protecting the Tax Exception for Employer-Sponsored Health Plans
The Council is working in conjunction with other trade organizations to encourage Members of Congress to preserve the current tax treatment of employer-sponsored health plans.
Why We Should Preserve the Tax Exemption for Employer-Sponsored Health Insurance
A helpful set of talking points from The Council's government affairs team about why the preferred tax treatment of employer-sponsored health plans should be preserved. The points made in this one pager are useful and easy for everyone, including clients, to understand.
Memo on the Final Rule on 2018 ACA Benefit and Payment Parameters
HHS has issued final 2018 benefit and payment parameters under the ACA. There are a variety of issues that are of great interest to Council members. These benefit and payment parameters apply for plan years that begin on or after January 1, 2018.
Benefits of the Tax-Preferred Status of Employer-Sponsored Health Insurance
American Health Policy Institute - 2016
Employer-provided health insurance has been excluded from income and payroll taxes for more than 60 years. In fact, the American Health Policy Institute notes in this 2016 report that this tax exclusion reduces the cost of health insurance by nearly 32 percent for the 177 million Americans who receive health care benefits through their employers. In the midst of certain political change however, this very exclusion is under threat.