The American Healthcare Act

Of course, everyone was expecting a complete repeal of 'Obamacare', as it is so endearingly referred to by many, but how is the American Healthcare Act measuring up so far? As with any new legislation, the process is not cut and dry. We are able to identify several key provisions, listed in brief below, that will directly impact employers, employees, and individuals. 

• The employer and individual mandate penalties would be eliminated for 2016 and later years. Those that choose to forego having health insurance can be charged up to a 30% premium surcharge beginning as early as 2018. 
• Most, but not all, of the assessments, fees, and ACA taxes will be eliminated.
• The 'Cadillac Tax' that was to begin charging employers an excise tax of 40% for high-cost employer-sponsored coverage is delayed until 2025. Applicable employers must have health coverage that averages less than $850 per month for individuals to avoid this tax. Luckily, most small and mid-range employers have costs that are well below this threshold. 
• Refundable Tax Credits for Health Insurance: Those that are not eligible for Government or Employer-sponsored healthcare coverage may receive 'advanceable', refundable tax credits for state approved major medical health insurance and unsubsidized COBRA coverage. Under age 30, the credit is $2,000, and $500 per decade is added to that sum up to 60+ wherein the maximum becomes $4,000. Those earning 75k individually or 150k jointly lose $100 for every $1,000 of earnings over those thresholds. 
• What stays: 
  • Most of the ACA plan design mandates. 
    • Plan Eligibility to age 26 regardless of status
    • Ban of lifetime and annual dollar limits
    • Ban on insurers charging more or denying coverage for pre-existing conditions
    • Caps on out-of-pocket qualifying expenses 
    • Essential health benefits