President Trump’s American Health Care Act Introduces 15 Big Changes

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The long awaited 123-page re-reform bill, named the American Health Care Act, was introduced on March 6, 2017. Outlining President Trump’s proposed healthcare reforms, the Act introduced 15 changes.

  1. Retroactively repeal the Individual Mandate.
  2. Terminate enhanced federal funding, by the end of 2019, for states expanding Medicaid.
  3. Turn Medicaid into a program that provides States with per-capita federal grants, beginning in 2019.
  4. Establish age-based, refundable premium tax credits.
  5. Phase out premium tax credits starting at incomes of $75,000 for individuals and $150,000 for families.
  6. Repeal most ACA taxes in 2018 that finance subsidies, Medicaid expansion, and Medicare enhancements.
  7. Delay the Cadillac Tax on high value plans until 2025.
  8. Minimal Essential Health Benefits (EHB) set forth by the ACA will not be changed; plans to be offered at specific actuarial values and metal levels by 12/31/19.
  9. Allow insurers to charge a 30% premium penalty after a coverage lapse, as a measure to promote continuous coverage.
  10. Allow insurers to charge older enrollees premiums five times greater than younger enrollees.
  11. Repeal ACA funding cuts for Medicaid disproportionate share payments.
  12. Repeal ACA subsidies to reduce low-income enrollees’ cost sharing in private health plans by the end of 2019.
  13. Prohibit Federal funding of Medicaid for Planned Parenthood and all organizations that perform abortions.
  14. Prevent enrollees from utilizing tax credits to purchase health plans that cover abortions
  15. Offer states $100 billion, over the course of 9 years, to establish high risk pools and/or other mechanisms that help to stabilize the insurance market.

 

GOP Leaders began marking up the bill on March 8, 2017. According to House Speaker Paul Ryan, the bill could be passed by Congress as soon as April through the Budget Reconciliation process.

The views and opinions expressed by the authors on this blog website and those providing comments are theirs alone, and do not reflect the opinions of Softheon, Inc. (dba Welltheos) or any employee thereof.

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Yvonne Villante
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Yvonne Villante

Senior Research Manager, Healthcare Reform at Welltheos
As our Senior Research Manager, I work closely with our Solution Architect, Product Management, and Sales teams. My role centers around competitive and market analyses, constructing premium content (whitepapers, research briefs, infographics), curating stories for our newsletters, and blogging.

I earned my BAA from the State University of New York at Stony Brook and MBA in Healthcare Administration from the University of Ohio (Athens). I was born and raised on Long Island, NY and enjoy capturing what the island has to offer through photography.
Yvonne Villante
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