The same week a congressional subcommittee held a hearing to discuss how the Affordable Care Act impacts small businesses, members of the House of Representatives introduced a measure that would repeal and amend a number of the health law’s provisions to favor small entities. Specifically, the Small Business Health Relief Act of 2011 (H.R. 2676), introduced by Reps. David Schweikert (R-AZ), Reid Ribble (R-WI), and Trent Franks (R-AZ), would repeal the following provisions of the Affordable Care Act:

• Section 1513, which lays out the shared responsibility requirements for employers, otherwise known as the “employer mandates” provision;
• Section 1514, which sets forth certain reporting requirements for employers regarding the number of employees they have and the coverage offered;
• Provisions (e), (f), and (g) of Section 10106, which set forth statements regarding the impact of health coverage or lack thereof on the economy and interstate commerce;
• Section 1302(c)(2),which sets forth the annual limitation on deductibles for employer-sponsored plans;
• Section 9010, which imposes certain annual fees on health insurance providers;
• Section 9003, which imposes certain restrictions on over-the-counter medications; and
• Sections 9005 and 10902, and Section 1403 of the Health Care and Education Reconciliation Act, which impose certain limitations on health flexible spending arrangements under cafeteria plans.

The bill also would allow, under certain circumstances, a high deductible health plan to meet coverage requirements if it is coupled with a health savings account. In addition, the measure aims to “ensure affordable coverage” by striking a number of provisions added to the Public Health Service (PHS) Act that prohibit discrimination in setting health premium rates.

Finally, the bill would add the following provision to Section 1251: Preservation Of Right To Maintain Existing Coverage:

A group health plan or health insurance coverage in which an individual is enrolled on or after March 23, 2010, but before any plan year beginning not later than 1 year after the date of the enactment of this subparagraph, and which is deemed to be a grandfathered health plan under this section, shall continue to be considered a grandfathered health plan with respect to such individual regardless of any modification to the cost-sharing levels, employer contribution rates, or covered benefits under such plan or coverage as otherwise permitted under this Act (and the amendments made by this Act).

Under the terms of this legislation, any regulations issued that implement the Affordable Care Act provisions related to grandfathered health plans would be nullified.

This bill has been referred to the House Committees on Energy and Commerce, and Ways and Means.