March 8, 2017

ACA Repeal and Replace Bill Unveiled

Holland & Knight Healthcare Blog
Nathan A. Adams IV

On March 6, House Republicans released their Affordable Care Act repeal and replace budget reconciliation legislation. The legislation repeals almost all of the revenue and spending provisions contained in the ACA. In their place, the bill creates a new tax credit to support the purchase of insurance, and a stability fund to provide resources to the states for innovative approaches to health care coverage. The bill also includes a special funding provision for the states that did not expand their Medicaid programs; repeals cuts effective in two years to the funding "allotments" that states receive to allow them to provide supplemental funding to hospitals that serve a disproportionate share of Medicaid and uninsured persons (Medicaid DSH); and would make a fundamental change in the state federal Medicaid program by shifting to a per-capita allotment financing approach.

For details on the bill and Republican enactment strategy, read Holland & Knight's memo.

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