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Senate Releases the Better Care Reconciliation Act

All clients of CBG Benefits may download our detailed Compliance Bulletin about this ACA replacement legislation via the CBGconnect portal.On June 22, 2017, Republicans in the U.S. Senate released a draft of their proposal to repeal and replace the Affordable Care Act (ACA). The proposal is being called the Better Care Reconciliation Act (BCRA).

Debate is currently occurring that will impact whether and when a vote may be taken regarding this Act. While some Republicans wanted to take a vote prior to the July 4th recess, the vote was delayed on June 27th. In the meantime, below is a brief overview of what you may need to know about this legislation.

  • The BCRA would reduce the penalties imposed under the ACA’s employer and individual mandates to zero, effectively repealing both mandates.
  • The BCRA would increase the maximum HSA contribution limits to align with maximum out-of-pocket limits.
  • The BCRA would delay the effective date of the Cadillac tax to 2026.
  • The BCRA would repeal the limitation on health FSA contributions for taxable years beginning in 2018.
  • To replace the individual mandate, the BCRA adds a penalty for people who go without insurance. People with a lapse in coverage would have to wait six months for their benefits to start.
  • The BCRA would provide States with additional flexibility to use waivers regarding ACA provisions.
  • The BCRA does not repeal the ACA’s reporting requirements for employers (Section 6056 reporting regarding Form 1094-C and Form 1095-C)

These are just a few key points to note about this legislation. For a more detailed overview, clients of CBG Benefits may download our Compliance Bulletin about this Act within the CBGconnect portal.

Please stay tuned for more information. If you have any questions about how this Act may potentially impact your business, please contact the CBG team at 781-759-1222.






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Posted in: Benefits and Insurance, Human Resources, Legislation

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