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Home Affordable Care Act GOP Health Care Bill Now Faces Uphill Battle in Senate

GOP Health Care Bill Now Faces Uphill Battle in Senate

2 minute read
by Robert Sheen

Today, with a vote count of 217 for and 213 against, the heavily Republican majority House passed the amended American Healthcare Act (AHCA). This rushed vote came with less than 24 hours to review the language of the amended bill, a few hours of debate and no score by the Congressional Budget Office (CBO). This amended version of the AHCA moved the bill further to the right to secure the hold out votes from the Freedom Caucus, a sizable group of very conservative Republicans. With this apparent success, the bill now moves to the Senate.

Before the Senate, however, the amended AHCA faces a protracted and uphill battle, where all or much of the bill may die a slow and drawn out death. The Senate has only a slim Republican majority (52 to 48) with at least four Senators (Lisa Murkowski (Alaska), Rob Portman (Ohio), Susan Collins (Maine) and Cory Gardner (Colorado) who have vocalized their opposition to the AHCA, and, likely, the amended AHCA as it fails to address their concerns, particularly with the proposed phase out of the expansion of Medicaid. The AHCA as amended is a further swing to the right from the original version, a shift that is likely to further alienate moderate Republicans like these four, whose vote in favor of the AHCA given the two vote margin is needed to pass.

What may result from the Senate may be something unrecognizable from the AHCA, and one plausible outcome may be that the Affordable Care Act is left in place. We will need to stay tuned to see what comes out from the Senate, which could be a protracted process. We will also need to stay tuned to see what happens in the House when a revised bill comes back. Notably, any changes made to the bill in the Senate must be sent back down to the House for approval, a process that could invite further splintering among the already fragile Republican alliance.

In the meantime, even if the Affordable Care Act (ACA) is ultimately repealed and replaced, until such time as the effective date of the legislation, applicable large employers will still need to comply with the ACA.

Under the AHCA as proposed, applicable large employers will need to continue the same data tracking process around Internal Revenue Code (IRC) Section 4980H and reporting under IRC Section 6056 (and Section 6055 for Self-Funded groups) through at least 2019.

Failure to accurately and timely file and furnish IRS forms 1094-C and 1095-C will still be subject to combined penalties of up to $1,060 per form under IRC Sections 6721 and 6722.

Notably, even the AHCA contemplates its own reporting requirements regarding offers of health coverage by employers. How this reporting requirement will translate to IRC rules remains unknown, particularly as the AHCA is likely to substantially change in the Senate – assuming it survives.

Summary
GOP Health Care Bill Now Faces Uphill Battle in Senate
Article Name
GOP Health Care Bill Now Faces Uphill Battle in Senate
Description
The House’s rushed vote on the AHCA as amended may not survive the Senate or come out unrecognizable.
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Publisher Name
The ACA Times
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