Human Resources News & Insights

Senate’s revised Obamacare repeal bill: What’s different and is it enough?

After failing to garner enough support for a vote before the July 4th recess for the Better Care Reconciliation Act of 2017 — aka the ACA repeal bill — the Senate went back to the lab and made some changes. Now the revised bill is out, and HR pros are anxiously waiting to see what happens next.

Although the Senate did leave many of provisions in the original bill intact, it did make some notable changes geared toward appeasing right-leaning Senators who didn’t feel the bill went far enough to repeal and replace the current health reform law.

6 key differences

Those changes included:

1. Pared-down benefit requirements

Where the ACA requires insurers to meet minimum requirements that include coverage for 10 essential health benefits, the revised bill would allow insurers to offer cheaper, slimmed-down coverage if the insurers offer at least one plan which meets the ACA standards.

(Note: Healthcare experts warn this change would severely threaten access to coverage for sick patients.)

2. Opioid-crisis funding

The revised bill would provide $45 billion to states to help combat the national opioid crisis. While this is well short of what experts say is needed to address the issue, it’s still more than the $2 billion the original Senate bill had earmarked for opioid-crisis funding.

3. Controversial tax cuts removed

Although the new Senate bill would keep some of the ACA taxes, it would kill two tax cuts that benefited the wealthy and do away with a tax break for high-earning health insurance execs. Both the cuts and the tax breaks were highly criticized aspects of the original Senate bill.

4. Catastrophic health plans

Under the Senate bill revision, people eligible for subsidies to receive tax credits would be able to purchase catastrophic health plans. Plus, anyone would be allowed to buy catastrophic coverage.

The ACA does allow young adult and some additional individuals to buy high-deductible, catastrophic plans featuring low premiums. But federal subsidies aren’t available for these plans — an attractive incentive for healthy individuals with fewer healthcare needs.

5. HSA-premium payments

The bill would allow individuals to use HSA funds to pay for healthcare insurance premiums.

6. Market stabilization

In an effort to help states reduce premiums in order to stabilize their insurance marketplaces, the revised Senate bill provides $182 billion in funding, an $112 billion increase from the $70 billion set aside in the first draft of the bill.

 

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