House Republicans have unveiled new healthcare legislation in the wake of votes in the Senate that failed to pass bills addressing expiring ACA enhanced subsidies.
Seven things to know:
1. The House Republicans’ proposal does not extend the enhanced subsidies that are set to expire at the end of 2025.
2. Association health plans: The legislation would allow small businesses to join together to purchase health plans, according to the report. The bill also would allow self-employed people to buy an association health plan.
3. CHOICE accounts: The bill would allow employers to offer their employees tax-advantaged funds to pay for individual health insurance (ICHRA), in place of offering traditional group plans, according to the report. Tax incentives would be offered for employers who adopt these arrangements.
4. Cost-sharing subsidies: When the ACA launched in 2014, the federal government reimbursed insurers for required cost-sharing reductions for lower-income enrollees, according to the report. Those payments ended in 2017 after a court ruling and the Trump administration dropped the appeal, though insurers still had to provide the discounts. To compensate, insurers raised silver plan premiums, increasing federal subsidy spending because subsidies are tied to silver prices. The Republican proposal calls for those payments to resume, which likely would lower silver premiums and reduce premium subsidies for all ACA enrollees.
5. PBMs: The proposal would require pharmacy benefit managers to provide employers with data on drug processes, the rebates they receive from manufacturers and other operations, CNN reported Dec. 15.
6. House Speaker Mike Johnson, a Republican from Louisiana, said a vote on the legislation is expected this week, NPR reported Dec. 13.
7. Democratic House Minority Leader Hakeem Jeffries of New York criticized the proposal for failing to extend the ACA enhanced tax credits, according to NPR.
