Draft of healthcare legislation released by U.S. Senate | KPMG | GLOBAL

Legislative update: Updated draft of healthcare legislation released by Senate

Draft of healthcare legislation released by U.S. Senate

The U.S. Senate Budget Committee today released text and explanations of revisions to the Better Care Reconciliation Act (BCRA) discussion draft. The new draft does not include any changes from current law to the net investment income tax, the additional Medicare health insurance (HI) tax, or the remuneration tax on executive compensation for certain health insurance executives.

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The purpose of this edition of TaxNewsFlash is to provide text of the updated discussion draft and related documents.

 

According to a Budget Committee release, the revisions of the BCRA provide:

  • An additional $70 billion to help cover out-of-pocket costs, to encourage state-based reforms (in addition to the $112 billion in funding already in the original bill)
  • A health savings account (HSA) provision that would, for the first time, allow individuals to use their HSAs to pay for their premiums
  • An additional $45 billion dedicated for substance (opioid) abuse treatment and recovery
  • More options for individuals who enroll in catastrophic plans to be eligible for a tax credit provided that they meet other tax credit eligibility requirements
  • Changes to the disproportionate share hospital (DSH) calculation from per Medicaid enrollee to per uninsured
  • Enhanced focus on higher risk individuals, by creating a fund for the purpose of making payments to specified health insurance issuers for the associated costs of covering high risk individuals enrolled in the qualified health plans on the Affordable Care Act’s individual exchange (to qualify for such funds, an issuer must offer sufficient minimum coverage on the exchange that remains subject to Title 1 mandates; offering such coverage would enable the issuer to also offer coverage off the exchange that would be exempt from certain Title 1 mandates)  

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