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March 6, 2017

A First Glimpse at Obamacare Repeal Legislation

Republican lawmakers are expected to introduce an Affordable Care Act replacement bill this week.  Based on a draft of the bill that was leaked to the press over the weekend, the bill would repeal the individual and employer mandates.  The bill would also replace the current income-based premium assistance tax credit with an age-based health insurance coverage credit.  The amount of the credit would range from $2,000 per year for individuals under age 30 to $4,000 for individuals age 60 and older.

The bill would also repeal a number of ACA tax increases, including the 3.8% net investment income tax, the 0.9% additional Medicare surtax and the excise tax on “Cadillac” health plans.

The bill would be introduced as budget reconciliation bill, meaning that it can be passed in the Senate by a simple majority, rather than 60 votes needed for non-budget action.

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