AHCA: 5 Things Consumers and Businesses Should Know

Last week, the House of Representatives passed the American Health Care Act (AHCA), the Republicans’ answer to Obama’s Affordable Care Act. Their intent is to fully repeal and replace the ACA (also known as Obamacare) with the AHCA, but the bill must pass through the Senate as well.

If the Senate does pass the AHCA and makes no changes to the bill, what does this mean for consumers and businesses?

Here are 5 things that you should know are part of the legislation:

  • If you do not go uninsured for 63 days or less, you will not have any pre-existing conditions to worry about. This is to stop people from jumping on and off insurance coverage as needed.
  • If you do go uninsured for more than 63 days, you can still get coverage, but will pay a higher premium for no longer than 12 months.
  • Subsidies will be paid in the form of tax credits and adjusted by age and income.
  • Health Savings Accounts (H.S.A.) annual contribution limits will increase.
  • Flexible Spending Accounts (FSA) contributions will be unlimited.

According to Business Insider, House Speaker Paul Ryan believes that it will take a month or two to pass through the Senate. As of now, it is uncertain how the rollout would occur if the legislation passes, as it would depend on how the Senate responds. There are several potential options: the Senate could modify the existing bill and collaborate with the House on a combined version; the Senate could pass an entirely different bill; or the Senate could even fail to act on this bill or health care in general.

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