U.S. House of Representatives Passes the American Health Care Act

Brian P. Goodman | 05.05.17

On May 4, 2017, the United States House of Representatives narrowly voted to repeal and replace the Affordable Care Act with the American Health Care Act (AHCA). The AHCA contains numerous changes to federal health insurance law that would affect individuals and employers alike. Among the changes are the elimination the Employer Shared Responsibility Rule (also known as the Employer Mandate) and the elimination of the tax penalties for individuals without insurance (also known as the Individual Mandate). Additionally, under the AHCA, states would gain the ability to opt out of certain federal requirements such as the federal definition of essential health benefits and the federal prohibition on insurance companies setting premiums based on health status. The manner in which states exercise this potential flexibility would have a significant effect on the scope and cost of health insurance nationwide for individuals and employers.

However, before the American Health Care Act can become law, it must pass the United States Senate and be signed by President Trump. There is some speculation that as currently drafted, the American Health Care Act might not pass the Senate without amendment. However, individuals, businesses, and employers should closely monitor these developments. 

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