Obamacare Replacement News

Obamacare Replacement News

Affordable Care ActOn 3/6/17, proposed legislation to repeal and replace the Affordable Care Act (ACA) passed in the Senate. We understand that you will have many questions as to how this will affect your business. A quick snapshot of proposed changes are as follows:

  • Both the employer and individual mandates to be eliminated
    • This would also remove the penalties associated with not having minimum essential coverage, retroactive to 1/1/16
      • Details are still being worked through
  • The Cadillac tax on expensive health plans will remain in place, but the implementation date will be pushed to 1/1/25
  • Those with pre-existing conditions will continue to be covered
  • Dependents will be able to stay on their parents coverage until age 26
  • Expansion of health savings accounts (HSAs)
  • Subsidies will replace tax credits for those without employer-sponsored health coverage
    • Subsidies to be tiered based on age:
      • $2,000 for younger people increasing to $4,000 for people over 60
      • Subsidies to phase out for individuals earning over $75,000 or family income over $150,000
  • Employer deduction for insurance coverage to be maintained
  • Existing ACA taxes to stay in place through 2018

NOTE: These proposed changes are still being negotiated.

We will relay all details as they are definitively decided. Please contact your FosterThomas Account Manager if you have specific questions regarding potential impact to your business.

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About the Author

FosterThomas is a leading professional services company that provides solutions in the areas of Human Resources Consulting and Outsourcing, HR Staffing, Outsourced Recruiting, Employee Benefits Brokerage, Payroll Implementation and Services, HR for Government Contractors, Business Insurance, HR Compliance and Risk Management. We help organizations by providing solutions designed with a focus on cost containment strategies and increasing HR efficiency. FosterThomas HR Consulting was established in 1993 with offices in Annapolis, Maryland (Corporate), McLean, Virginia and Raleigh, North Carolina. Today, FosterThomas occupies a unique position as a full service provider of HR services.

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