Both the U.S. House and Senate passed legislation, the Restoring Americans’ Healthcare Freedom Reconciliation Act, which would repeal major portions of the Affordable Care Act (ACA). Congress has voted to repeal parts of the Act more than 50 times since the law’s passage in 2010. However, this the first time legislation repealing the law will make it to the president’s desk. President Obama plans to veto the legislation and based on the votes thus far Congress will likely be unable to override the veto, leaving the Act intact.
Despite the Republican-controlled Congress’s inability to repeal the entire Act, some small, incremental changes have been successful. In late December 2015, Congress was successful in enacting a two year delay of the 40 percent excise tax also known as the “Cadillac tax” on employer-sponsored health plans. In addition, the health insurance tax on fully insured health plans was suspended for calendar year 2017 and the medical device tax was suspended for two years.
AGC will continue to advocate for additional changes to the Act in 2016. Some of the top issues include a permanent repeal of the Cadillac Tax, ending small businesses Health Reimbursement Account penalties, reducing employer reporting requirements, changing the “full time” employee definition and simplifying rules for seasonal employees.
For more information, please contact Jim Young at youngj@agc.org or (202) 547-0133.