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Regardless of whether the newly released American Healthcare Act (AHCA) represents a repeal, repeal and replace, or a repair of the Affordable Care Act (Obamacare), most of its provisions can be grouped into one of five major topics.  This week on Happenings on the Hill, we will feature an in-depth review of each of these topics and how each may impact Georgians.




Perhaps the most widely reported aspect of the AHCA is that the proposed legislation repeals the penalties for what are called the individual and employer mandates.

Individual Mandate

Under the Affordable Care Act (Obamacare) all individuals legally residing in the United States are required to get and keep health insurance unless the individual qualifies for an exemption. This requirement is sometimes referred to as the “Individual Mandate.” Anyone that does not comply with this mandate must pay a fee called the Shared Responsibility Payment when he or she completes her tax return each year. This amount is currently around $700 per person or 2.5% of the consumer’s total income.

The AHCA removes the penalty for failing to purchase insurance. If passed no one would have to pay a penalty.


Employer Mandate

Like the Individual Mandate, the Affordable Care Act (Obamacare) also mandated that certain employers provide health insurance to its employees. This is sometimes referred to as the “Employer Mandate.” This mandate requires employers with 50 or more full time equivalent employees to provide health insurance to at least 95% of their full-time employees and families. If employers fail to offer this required coverage, they must also pay a penalty.

The AHCA removes the penalty for employers as well. If passed employers covered by the Employer Mandate would not have to pay a penalty.




Check back tomorrow to learn how the AHCA changes the way premium tax credits are calculated and used.