House Republican Leadership Unveils Blueprint for ACA “Repeal & Replace”

Feb. 20, 2017

On Feb. 16, House Republican leadership distributed a policy brief outlining how they intend to go about repealing the Patient Protection and Affordable Care Act (ACA) – or “Obamacare” – originally enacted in 2010. While the policy brief shares ideas on where the repeal legislation is headed and includes some replacement elements long championed by Republicans, it lacks legislative language.

The plan notes that the 2015 reconciliation bill will continue to be used as a foundation to repeal the ACA’s subsidies, mandate penalties, and taxes – including a full repeal of the medical device tax – and suggests the addition of replacement features such as:

  • Creating a new portable, monthly tax credit that can be used to buy a health insurance plan.
  • Enhancing health savings accounts (HSAs) by increasing the amount of money an individual or family can put into their HSA, and allows individuals and families to spend money from their HSA on “over-the-counter” health care items.
  • Establishing state innovation grants that could be used to fund high-risk pools, or help patients with out-of-pocket costs.
  • Repealing Medicaid expansion and converting Medicaid into a per-capita allotment or block grant, after a transition; and, lowering the matching rate for the expansion population in states that chose to expand their programs.

A copy of the policy brief is available here.

Actual legislation to repeal and replace the ACA is likely to come after the President’s Day recess, though the exact date is unclear since any bills must be scored by the Congressional Budget Office (CBO). The Committee work is expected to begin after the recess.

CLSA continues to closely monitor the federal activity, and state response on efforts to repeal and replace the ACA. Where appropriate, CLSA will weigh in on ACA-related issues in the critical context of preserving and promoting Californians’ access to innovative therapies.

Questions? Please contact Jenny Carey, CLSA’s Vice President of Federal Government Relations and Alliance Development (