Fri March 17, 2017

The House Committees on Ways and Means and Energy and Commerce have passed two pieces of legislation to repeal sections of the Affordable Care Act (Obamacare) and replace them with the American Health Care Act. Votes by the House and Senate early in the session allowed for the use of the budget reconciliation process (link article below), and the legislation can only repeal parts of the law with implications on the federal budget. Among the taxes to be repealed is the 2.3 excise tax on medical devices. The House Budget Committee passed the combined reconciliation package by a narrow vote of 19-17 with three conservative members of the Freedom Caucus voting against the measure. Because of the lukewarm support for the American Health Care Act, it is anticipated that changes will be made to the replacement language before the measure is considered by the full House. There continues to be bipartisan support for the repeal of the medical device tax.