Executive Order on the Affordable Care Act

Jan 24, 2017

executive order on the affordbale care actHours after his inauguration, President Trump signed an Executive Order on the Affordable Care Act (ACA) that appears to be the Administration’s first step toward dismantling it.

The Order instructs departments and employees of the Executive Branch – when possible – to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the ACA that would impose a financial burden on individuals or organizations.

For employers, the effects of the Executive Order will not be immediate. Employer obligations under the ACA, such as the employer mandate and reporting, cannot be undone without revising regulations. The process for revising regulations takes time, as changes must go through formal notice-and-comment rulemaking procedures. For now, the employer mandate and employer reporting requirements remain in effect and employers should continue to comply with all provisions of the ACA.

The most likely results of this Executive Order include the Department of Health and Human Services issuing more waivers and exemptions from the individual mandate, and changing the specifics of what services must be covered by insurance plans. Neither of those changes, however, would directly affect the requirements of employers.

GTM will continue to closely monitor this issue and update our clients if changes are made that impact employer obligations. For more information, contact us at (518) 373-4111.

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