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What Are the Implications for Medicare of the American Health Care Act?

Issue Brief
  1. The AHCA would also repeal the annual fee paid by branded prescription drug manufacturers, which would decrease revenue to the Part B trust fund, and reinstate the tax deduction for employers who receive Part D Retiree Drug Subsidy (RDS) payments to provide creditable prescription drug coverage to Medicare beneficiaries, which would increase Medicare Part D spending.

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  2. The Congressional Budget Office estimates trust fund insolvency by 2025 under current law, according to the January 2017 Medicare baseline. According to estimates from the Committee for a Responsible Federal Budget based on CBO projections, repealing the payroll surtax would move up the insolvency date to 2024;

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