On May 4, the House of Representatives narrowly passed H.R. 1628, the American Health Care Act (AHCA) of 2017. If enacted, the AHCA would effectively repeal and replace many provisions of the Affordable Care Act (ACA). The full text of the bill and its amendments are available on the House’s website.
Payroll-related provisions of the AHCA would include:
- Eliminate the employer and individual mandates
- Revise employer reporting
- Require insurer reporting
- Repeal the Additional Medicare Tax
- Allow reimbursements for over-the-counter medications
- Eliminate FSA contribution limits
- Increase HSA contribution limits
- Reduce penalties for HSA and MSA distributions
- Delay the “Cadillac tax”
Despite passing in the House of Representatives, the AHCA still faces an uncertain future. The bill must be passed by the U.S. Senate and signed into law by President Trump before it can take effect.
Pay News Now will continue to track any proposed changes to the Affordable Care Act and the progression of the American Health Care Act.