March 2017 •
Special Edition •
Providing Current Information on
Health Insurance Industry Issues and Legislation
What the Bills Do and What They Don't
This article outlines the legislative process for review and passage of the bills as well
as which components of the Affordable Care Act will be retained and which will not.
Employer Healthcare Insurance Tax Break at Risk
Presently, employers enjoy preferential tax- treatment for providing healthcare
insurance to their employees. Some estimate capping or eliminating these
preferences could generate up to $4 trillion dollars in taxes. While reduction or
elimination of the preference is not in the present bills, the GOP is looking hard at this
money as the primary source for funding their healthcare program.
Winners and Losers in the ACA Repeal
The replacement for the Affordable Care Act would have a major impact on
Medicaid, the tax credits people receive for purchasing healthcare and the
pocketbooks of wealthy Amercians.
Say Goodbye to the Insurance Mandate and Medicaid Expansion
The GOP's healthcare bills do away with taxes and fees applicable under the
ACA. The bills scrap the requirement that individuals purchase coverage or pay a
fine. The also halt the expansion of Medicaid while placing tighter restrictions on
who will qualify in the future.
GOP Repeal Bill Dumps Cadillac Tax
The House of Representatives bills to repeal and replace the Affordable Care Act
eliminate the tax on high-value employer health plans. This provision would have
taxed employers for the value of employer-provided health insurance that exceeds
the 90th percentile. The bills would also repeal most of the other ACA taxes that
financed the law's subsidies.
Providers Face Double Whammy in GOP Healthcare Providers
Hospitals and other providers will be some of the biggest losers under the new
GOP healthcare program. They are likely to have to bear the burden of increases
in uncompensated care while facing the specter of lower reimbursement for
services provided to Medicaid recipients.
Price Leads the Charge for More State Control
Health and Human Services Secretary Tom Price is pushing hard to put more
healthcare decision making power and healthcare program funds into the hands of
the states. He favors block grants for Medicaid, the option to charge women more for
healthcare insurance, the creation of high-risk pools and more.
