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What employers need to know about the American Health Care Act

On Monday, March 6, House Republicans released the American Health Care Act, their long-awaited plan to repeal and replace the Affordable Care Act (ACA), more commonly known as “Obamacare.” While the goal for Republicans over the last eight years has been to repeal the ACA in its entirety, for the most part the new bill leaves much of the existing legislation in place.

The reason why stems from the rules for the process in which Republicans seek to pass the American Health Care Act: budget reconciliation. The advantage of passing the ACA repeal and replace legislation as a reconciliation bill is that only a simple Senate majority is required for passage (some may recall that parts of the ACA were enacted using the same mechanism).

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