House Reveals Healthcare Repeal and Replace Plan

Recently, the U.S. House of Representatives announced their bill to “repeal and replace” components of the Affordable Care Act (AKA Obamacare). 

Below is a summary of some of the proposed changes and what they may mean to consumers and business owners.  Please keep in mind the Senate will most likely make changes before it’s passed. 

• Eliminates individual and employer mandate penalties
  If you don’t have insurance, you won’t have to pay a tax penalty. Employers will no longer be required to provide health insurance to their employees.
• Repeals ACA tax credit in 2020
  If you are getting a subsidy to lower your premium, in 2020 the current structure will no longer be available.
• Creates new tax credit adjusted by age ranging from $2000-$4000 available to those under $75,000 Individual/$150,000 Family income
  Credits will be based primarily on age and the income thresholds have been increased. Tax credits will be reduced for many people who make under $45,000 for an individual.  And individuals who make $45,000 – $75,000 will be eligible for a subsidy.
• Repeals Small Business tax credit in 2020
  Employers – If your Group health insurance plan is enrolled in the SHOP Marketplace and your business is getting a tax credit, those credits will no longer be available in 2020.
• Delays “Cadillac Tax” until 2025
  Employers – If your Group health insurance plan is considered a Cadillac Plan, the penalty to pay an annual 40% excise tax is extended to 2025.  Under the current law it’s scheduled to begin in 2018.  A Cadillac Plan is one where the annual premiums are more than $10,200 for individuals or $27,500 for a family.
• Repeals Cost Sharing Subsidies in 2020
  If you are getting a reduction in your deductible and co-insurance, those will no longer be available in 2020.
• Creates a continuous health insurance coverage incentive beginning in 2019 by allowing plans to increase premiums by 30% for anyone with a 63-day or more lapse in coverage.
  If you let your coverage lapse, you will pay higher premiums.
• Repeals insurance actuarial value standards
  The Platinum, Gold, Silver, Bronze level plans will no longer be standardized.
• Loosens age-rating requirements to a 5:1 federal standard and state flexibility to set different ratio
  Currently the premiums for individuals ages 50-64 can’t be more than 3 times the premium of a 21 year old. The bill changes that to 5 times the premium of a 21 year old.
• There will be many changes to the Medicaid system, and it will depend on the state you live in. 
  If you are on Medicaid, stay tuned for more information. 

 
Click here to review more on the proposed Health Insurance “Repeal & Replace” changes.