e-newsletter client login
articles and presentations
financial calculators
record retention
tax news
useful site links

Join our mailing list

We publish an e-newsletter that includes the latest news and tax alerts. To subscribe, enter your email address below:

Debate Over Health Care & Taxes Moves to Senate
Grossman St. Amour CPAs PLLC
June 2017

 The future of the Affordable Care Act and its associated taxes has moved to the Senate following passage of the American Health Care Act (AHCA) in the House in April. Traditionally, legislation moves more slowly in the Senate than in the House, which means that any ACA repeal and replacement bill may be weeks if not months away. 

Note. At the time this article was prepared, few details have emerged about discussions in the Senate on the ACA’s taxes. Some senators have predicted that the Senate will write its own ACA repeal and replacement bill. A Congressional Budget Office (CBO) report, issued in late May, scored the House-passed AHCA as eventually causing 23 million fewer individuals to be covered, a number that may prompt the Senate to move further away from the House bill. It is also unclear if a Senate bill would repeal all or some of the ACA’s taxes. A Senate bill could also make other changes to the ACA, such as changes to the individual and employer shared responsibility requirements and the Code Sec. 36B premium assistance tax credit.

Health care taxes

As approved by the House, the AHCA repeals nearly all of the ACA’s taxes and delays the ones it does not repeal immediately. The House-passed version of the AHCA repeals the net investment income (NII) tax, the excise tax on medical devices, and the health insurance provider fee, among others, retroactively to the start of 2017. Further, the House-passed version of the AHCA delays the ACA’s excise tax on high-dollar health plans.

Whether the Senate will go along with repealing all or some of the ACA’s taxes is unclear. Some GOP members of the Senate Finance Committee had previously called for immediate repeal of the additional Medicare tax. Other Republican senators called for immediate repeal of the medical device excise tax. Our office will keep you posted of developments.

Code Sec. 36B credit

Individuals who obtain health insurance through the ACA Marketplace may qualify for a tax credit to help offset the cost of coverage. The House-passed version of the AHCA also revises the Code Sec. 36B premium assistance tax credit. The amount of the credit would vary depending on the taxpayer’s age, among other modifications. Again, it is unclear if the Senate will adopt these changes to the credit or make its own revisions.

Other provisions

An ACA repeal and replacement bill in the Senate also is expected to address, among other things,

  • Individual and employer shared responsibility requirements
  • Health savings accounts
  • Code Sec. 45R small employer health insurance credit
  • Branded prescription drug fee
  • Medical expense deduction
  • Minimum essential health benefits

Other health care bills

Just before Congress’ Memorial Day recess, the House Ways and Means Committee approved several bills related to the House version of the AHCA. One bill would allow individuals who have certain types of COBRA coverage to claim the revised Code Sec. 36B credit. Another bill would disallow advance payments of the credit unless the recipient is a citizen or national of the U.S. or an alien lawfully present in the U.S.

Administrative actions

The U.S. Department of Health and Human Services (HHS), the Department of Labor (DOL) and the IRS administer different parts of the ACA. In May, HHS announced that changes to the direct enrollment process for the ACA Marketplace. HHS also announced that online enrollment for the Small Business Health Options Program (SHOP) would be through an agent or broker.

Please contact our office at 315.424.1120 or tkiesa@gsacpas.com if you have any questions about health care and taxes.

back to articles & presentations



Grossman St. Amour CPAs PLLC
110 West Fayette Street, One Lincoln Center, Suite 900 • Syracuse, NY 13202
T 315.424.1120   F 315.422.0829   info@gsacpas.com
Privacy Policy

| About Us | Our Team | Firm News | Community Involvement | Associations/Memberships | Client Testimonials | Accounting & Auditing Services | Audit & Attest Engagements | Financial Statement Preparation | Bookkeeping | Internal Control Review | Fraud Examination & Deterrence | Consulting Services | Business Formation & Valuation | Financial Benefits & Retirement Planning | Merger, Acquisition & Succession Planning | Management Consulting | Real Estate Planning | Technology Consulting | Tax Services | Income Tax Return Preparation | Payroll & Sales Tax Return Preparation | Tax Planning for Businesses | Tax Planning for Individuals | IRS and State Tax Audit Representation  | Industries Served  | Affordable Housing | Construction & Real Estate | Employee Benefit Plans | Equestrian Businesses | Fire Districts Government / Municipalities | Medical Practices & Healthcare | Not-For-Profit | Public School Districts | Manufacturing and Retail Distribution | Resources | Articles & Presentations | Financial Calculators | Record Retention Guidelines | Tax News | Useful Site Links | Career Opportunities | Benefits | Employee Testimonials | Contact Information | Directions