House Republicans Release PPACA Replacement Blueprint
Late last week, Republicans in the House circulated a blueprint of their PPACA replacement plan. The 19-page blueprint describes Republicans’ views on current PPACA problems and issues, and outlines their primary foundation for a PPACA replacement. The blueprint is loosely based on House Speaker Paul Ryan’s (R—Wis.) “A Better Way” proposal, which includes the implementation of portable individual health care tax credits based on age (not income), an expansion of the use of HSAs (in both annual contribution limits and distributions for over-the-counter medical expenses), an overhaul of Medicaid and the elimination of penalties relating to PPACA’s individual and employer mandates. The blueprint also spells out a plan to use state innovation grants in an attempt to create state-based high risk pools for more vulnerable individuals.
The blueprint is not formal legislation, but does signal the general direction Republicans are taking with respect to their repeal and replace efforts. While not addressed in the blueprint, those close to discussions also believe that a replacement bill will include some type of cap or limit to the employee tax exclusion for employer-provided benefits. We cover that topic more in our Compliance Podcast.
Looking ahead, most believe that formal replacement legislation will be introduced in Congress mid-March. As discussions continue and legislation is introduced, we will continue to provide related information and links in the announcement section of Resource Center.