Designed to provide greater flexibility to individuals and employers alike, the measure has numerous components. Among the more notable items (from an employer standpoint) include:
- Eliminating the individual and employer mandate penalties for months beginning after December 31, 2015;
- Prohibiting health insurers from denying coverage or charging more for pre-existing conditions. Allow dependents to continue staying on their parents' plan until they are 26;
- Enhancing and expanding Health Savings Accounts (HSAs); including allowing spouses to make catch-up contributions to one HSA (beginning in 2018);
- Providing a monthly tax credit, between $2,000 and $14,000 a year, for low- and middle-income individuals and families not insured through work or a government program.
Not all however is positive. The "Cadillac Tax" (currently on hold until 2020) would still be retained, but would not take effect until 2025. [After all, there remain costs to any replacement bill.]
To see the Congressional press release -
click here.
To see a section-by-section summary of the bill -
click here.
Of course, this is the first step and by no means is indication that this will be the final outcome. Despite only needing a simple majority to pass both chambers of Congress (due to Budget Reconciliation measures being invoked on this subject), the bill still faces opposition (even within the Republican party) which raises questions as to whether the bill in its current form will survive (especially in the Senate). Undoubtedly there will be much debate and possible compromises in order to muster the votes necessary to see it through.
We will keep you posted as further developments unfold.
