House releases ACA replacement plan

March 7, 2017
The U.S. House Energy and Commerce Committee and the Ways and Means Committee have released draft legislation to repeal and replace the Affordable Care Act (ACA).

Specifically, the Ways and Means Committee proposes to repeal the individual and employer mandates as well as the indoor tanning tax, and would allow individuals to use health savings accounts to purchase health care. Additionally, the Ways and Means legislation would provide an age- and income-adjusted monthly tax credit to individuals and families who don’t receive insurance through their employer or the government.

The House Energy and Commerce Committee proposes to phase out the provision in the ACA that calls for Medicaid expansion and would fund state Medicaid programs through a per capita allotment. Several GOP senators have indicated concern with this provision, raising questions about whether the overall legislation has the votes to pass.

Finally, under this new proposal, individuals under the age of 26 may remain on their parents’ insurance and the provision requiring insurers to cover people regardless of pre-existing medical conditions will remain.

The Committees will hold markups on the legislation on Wednesday, March 8.