HR pros now have a clear picture of what a future without Obamacare could look like.
That’s because House Republicans introduced The American Health Care Act, a bill that would “repeal and replace” the current ACA.
No more play-or-pay
Under the bill, businesses with 50 or more full-time equivalent employees would no longer be required to offer insurance to full-time employees.
Individuals would also no longer be required to purchase health insurance or pay a penalty.
However, if individuals go uninsured for more than two months and then buy health coverage, insurers would have the option of imposing a 30% tax on them under the new bill.
The replacement bill would offer tax credits for purchasing insurance; however, those credits would be based on age instead of income.
Example: a person under the age of 30 would receive a credit of $2,000. A person over the age of 60, on the other hand, would receive double that amount. Credits would increase for families but would be capped at $14,000.
Some of the other key changes:
- An expansion of HSAs. The bill would nearly double what people can save, with annual contribution limits to equal the sum of the annual deductible and out-of-pocket max under a high-deductible plans.
- More HSA flexibility. Workers would be permitted to use HSAs for purchasing over-the-counter meds.
- An end to FSA limits. Beginning in 2018, the contribution limits the ACA imposed on FSAs would stop.
‘Cadillac tax’ lives on
One thing the new bill wouldn’t repeal: The “Cadillac tax.” Instead, it would simply delay its implementation date until 2025 (currently 2020).
Funding for the bill is expected to come from this Excise Tax as well as ACA taxes the legislation leaves in place until the start of 2018.