Compliance, Employee Benefits

On Friday, March 24, 2017, the House of Representatives called off a vote on the American Health Care Act (AHCA) due to a lack of votes. The AHCA was an attempt to repeal/replace/repair the Affordable Care Act (ACA).

Highlights of the AHCA called for:

  • A reduction of the employer mandate penalties to $0.
  • A reduction of the individual mandate penalties to $0.
  • Further delay of the Cadillac Tax until 2025.
  • A transition from Marketplace subsidies to tax credits based on age and income.
  • The repeal of a number of ACA taxes, such as the Health Insurer Tax (HIT), increased Medicare Tax and the “tanning tax”.
  • A number of reforms to Medicaid.

While the failure of the AHCA is in the news, it is important to remember that the current ACA requirements remain the law. It is important to note that while the legislation may not have passed, there are still changes happening to the ACA such as:

  • On January 20, 2017, President Trump issued an Executive Order instructing regulatory agencies in charge of interpreting and enforcing ACA requirements to delay or hold on requirements that may cause economical or regulatory burdens to any stakeholder, including employers. To date, we have not received any substantive delays on employer requirements.
  • The Centers of Medicare and Medicaid Services (CMS) extended the transitional policy for small employer non-ACA compliant plans through 2018.
  • The Cadillac Tax implementation is still on the calendar for implementation in 2020.

Key Takeaway

While the AHCA may have not been successful in the legislative process, it’s important to note that the ACA requirements are still in place and must be complied with. Also, the Trump Administration has made known its desire to ease the burden of ACA regulations for all stakeholders.

We will continue to monitor any potential legislative or regulatory changes for you and will provide you with updates when major changes happen or steps in the legislative process occur.

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