White_HouseTrump Order and ACA

President Trump signed an Executive Order on Jan 20 Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal. As a practical matter, he can’t repeal it “line-by-line on day one” of his Presidency. So he did the next best thing: sign an Executive Order.

While lawmakers work on a repeal and replacement plan, here are 5 things you should know. The executive order will:

  1. End the individual mandate.
  2. Expand Medicaid waivers and provide states more flexibility to implement healthcare programs.
  3. Encourage the creation of interstate insurance markets to “the maximum extent permitted by the law.”
  4. Remove ACA taxes, including some placed on health insurance and pharmaceutical companies, in addition to waiving PPACA taxes, fees, and penalties.
  5. Grant leaders of the Department of Health and Human Services (HHS) and other agencies to exercise greater discretion. This includes the ability to waive, defer, or grant an exception to any provision that would impose a fiscal burden on a state or place a financial or regulatory burden (cost, fee tax, penalty) on individuals, families, healthcare providers, and patients.

We will soon know whether the Executive Order is more symbolic or has practical effects.   Employers should continue to comply with the provisions in current law, until official guidance provides otherwise.

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