ACA repeal, delay would lower federal revenue, balloon deficit, CBO says

House GOP legislation delaying or repealing parts of the ACA would decrease federal revenue by $51.6 billion and increase the federal deficit by $58.5 billion over the next 10 years, according to Congressional Budget Office estimates.

Eight things to know:

1. The estimates are part of a report released Sept. 11 regarding the potential direct spending and revenue effects of the Save American Workers Act of 2018.

2. The legislation, HR 3798, would retroactively delay penalties for the ACA's employer mandate from 2015 through 2019, according to The Hill.

3. The employer mandate requires applicable large employers to offer "affordable" and "minimum value" essential coverage to full-time employees and their dependents, according to the IRS. The mandate applies to employers with at least 50 full-time employees, on average, including full-time-equivalent employees, during the prior calendar year.  Large employers that don't comply owe the IRS a penalty payment.

4. The CBO projected delaying the employer mandate penalty would decrease federal revenue by $25.9 billion through 2028.

5. The House GOP legislation would also repeal the 30-hour threshold for the ACA's definition of a "full-time employee" for employer mandate purposes and change it to 40 hours.

6. The CBO projected changing the definition of full-time employment would decrease federal revenue by $9.8 billion through 2028.

7. Additionally, the House GOP legislation calls for delaying the "Cadillac" tax on high-cost employer-sponsored plans to 2022.

8. The CBO projected delaying the excise tax on high-cost employer-sponsored health plans would decrease federal revenue by $15.5 billion through 2028.

 

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