The U.S. Senate, in pre-dawn hours today, adopted a budget resolution that starts the process to repeal certain core provisions of the Affordable Care Act (also popularly known as “Obamacare”). The measure passed by a 51-48 vote along partisan lines—the only Republican opposing the resolution was Sen. Rand Paul (KY).
Read text of the budget resolution.
The House of Representatives is expected to vote on the resolution tomorrow, January 13, 2017.
President-elect Trump has called for Congress to “very quickly” present legislation that replaces Obamacare, but the actual timing and substance of such legislation are uncertain at this time. It is also unclear if Congress will pass a single or multiple bills to "repeal and replace" the Affordable Care Act.
Because a budget resolution does not require the president’s signature, the resolution itself may not be used to repeal or change any law. What the budget resolution does provide is reconciliation instructions directing the congressional committees responsible for healthcare—in the Senate, the Finance Committee and the Health, Education, Labor and Pensions Committee; and in the House, the Energy and Commerce Committee and the Ways and Means Committee—to develop deficit-reducing legislation.
The budget resolution sets the stage for a budget reconciliation bill that is expected to be the vehicle to enable Congress to pass legislation repealing certain taxing and spending (but no other) provisions of the Affordable Care Act with a simple majority vote in both the House and the Senate.
Read a November 2016 report [PDF 72 KB] from KPMG that discusses the potential impact that a budget reconciliation bill may have on the Affordable Care Act: What Does the Future Hold for the Tax Provisions of the Affordable Care Act?
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Monica Coakley | +1 (615) 248-5639 | firstname.lastname@example.org
Lori Robbins | +1 (202) 533-3491 | email@example.com
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