House Ways and Means Committee Chairman Kevin Brady (R-TX) and Energy and Commerce Committee Chairman Greg Walden (R-OR) this evening (March 6, 2017) released legislation, the American Health Care Act, as part of the House Republican effort to repeal and replace the Affordable Care Act (ACA). Changes proposed by the bill include:

— Repealing the health insurance, medical device, pharmaceutical, net investment, Medicare and tanning taxes

— Delaying the 40% "Cadillac Tax" on employer-sponsored health coverage until 2025

— Retroactively reducing the individual and employer mandate penalties to $0, effective for months beginning after 31 December 2015

— Allowing employers to deduct the entire cost of retiree prescription drugs even if they receive a Medicare Part D subsidy

— Removing limits on the deductibility of compensation over $500,000 paid to executives of certain health insurance providers

— Repealing the tax on over-the-counter medications and the limitations on contributions to Flexible Savings Accounts

— Repealing premium tax credits beginning in 2020

— Creating "advanceable, refundable" tax credits with which eligible individuals could purchase certain health insurance policies

— Expanding health savings accounts and reducing the penalty for excess contributions

— Reducing the income threshold for determining medical expense deductions

Both committees will consider their respective parts of the bill in separate markups beginning on Wednesday, March 8, at 10:30 a.m. A Tax Alert on the bill's provisions is forthcoming.