Late January, President Trump signed a healthcare executive order that could impact employers, even if it did not specifically mention them.
The executive order instructed federal agencies to, “waive, defer, grant exemptions from, or delay the implementation of any provision or requirement that would impose a fiscal burden,” on states, health care providers or individuals. The order can undo individual mandates to purchase insurance and other mandates placed on employers, like providing full-time employees with coverage.
The employer mandates may be regarded as a fiscal burden, according to the wording of the executive order. The employer mandate may become questionable if there is no tax on individuals who do not have minimum essential health insurance.
Nonetheless, it is advisable for all employers to continue complying with the established rules by the ACA until the GOP proposed American Health Care Act (or another act) is implemented.
The transition from the ACA to the proposed American Healthcare Act may be painful and prolonged. Stay on top of what is happening in the industry and understand your existing health coverage to be able to evaluate what may replace it.
Late January, President Trump signed an executive order that urges his administration to repeal and replace the Affordable Care Act (ACA). The order allows legislators to fight the current health care system by adding new rules and regulations. The executive order points the administration to allow states to decide the changes in healthcare policy.
This order sends a signal to the American people that health care laws are coming. The order itself, however, does not affect the ACA directly. In fact, the executive order is broad in scope and it raises a number of questions such as:
- How will changes impact employers offering group health care plans?
- How does the order affect what is currently in place under the ACA rules and regulations?
- If the mandate for individuals to have minimum essential health insurance or pay a penalty is suspended, how does that affect employers?
With so many questions to be answered, the plan to replace ACA is not going to be immediate. Given the nature of the legislative process, checks and balances, public input on various issues, various legal issues and political agendas, it may be several years before the ACA is replaced.
President Trump and his administration are actively engaged in negotiations about legislation meant to repeal and replace the Affordable Care Act (ACA). In late January, Trump signed an executive order that urges the current administration to fight the ACA.
In order to try and understand the executive order, here is a quick look at what the order contains:
- The new administration’s policy is to seek a prompt repeal of the ACA
- The order intends to efficiently maintain the ACA until repeal efforts are concluded
- The order minimizes regulatory and economic burdens to the states
- The order provides the states with greater flexibility to implement a free marketplace in the health care insurance industry
The full text of the order is far more revealing and it directs the Secretary of the Department of Health and Human Services (HHS) and other agencies with authority under the ACA to: “exercise all authority and discretion available to them to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the [ACA] that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.”
It is clear that Trump intends to follow up on his campaign promise, and repeal and replace the ACA. In the months and years to come, a number of significant changes to the health care industry are expected. How this will impact on consumers is another question. Therefore, it is advisable that you check your existing health care insurance, understand fully what it covers and when any changes will be made to your coverage. Staying current on any healthcare news will allow you to transition into the future health care plan with ease.
One of the first executive orders President Trump signed was to pave the way for Congress to repeal and replace the Affordable Care Act (ACA). That order came one week after the House of Representatives passed a Senate budget resolution bill opening the door for the first step in a three step process to repeal the ACA.
A “reconciliation directive” in the budget resolution bill instructs four committees that oversee the federal healthcare program to draft legislation to repeal the ACA. The four committees involved include: the Energy and Commerce Committee in the House; the Health, Education, Labor and Pensions Committee in the Senate; the Finance Committee and the Ways and Means Committee.
The resolution bill gave instructions to complete a draft of repeal legislation by January 27, 2017. This deadline was unrealistic, as discussion about which parts of the ACA to repeal took more than only a couple of weeks. It is not clear what parts of the ACA, if any, are to be preserved.
The next step in the complete repeal and replacement of the ACA, is for the four committees to send their plan, also known as budget reconciliation, to the budget committee. Following this, both houses of Congress will take a vote, and a simple majority is necessary for the reconciliation to pass. Only after the vote, will parts of the ACA be repealed.
The last step in the process of ACA repeal and replacement is a comprehensive healthcare plan to replace the ACA. Following the release of the American Health Care Act, the Republican plan to replace and repeal the ACA a debate erupted between the Democrats and Republicans regarding the protection of coverage for low-income people.
The growing opposition to the proposed Republican healthcare program will likely affect the timeline of the repeal and replacement of the ACA.
Many Americans are hoping for a reform in the health insurance system. They are hoping that the Trump administration delivers on its promises regarding health care. People want choices and perhaps that is what the incoming administration is planning to accomplish. It is not clear what changes may be made yet.
What most do no know is that in many states people only had one choice for their health insurance. What is worse is that in other states people had no choice in health insurance. Moreover, many of those who did sign up for insurance through the ACA, were unable to pay their premiums. Many people who qualified for the ACA, did not qualify for government subsidies.
The idea of the ACA was to get the young and healthy people to sign up to provide a cushion for those older Americans who do need health insurance more often. This, however, was not very successful. Young people were priced out of the market, as current wages do not keep up with the rising cost of living.
Obviously the health care system is incredibly imbalanced and a ponderously expensive entity that needs work to make it function well. Much like immigration reform, a replacement for the ACA is going to take some foresight and careful consideration.
The incoming administration is determined to repeal and replace the Affordable Care Act (ACA). It is difficult to know yet, what is to replace it and how the new system will work. Some provisions from the ACA may be kept in place like keeping kids on a parent’s health plan until they are 26 years-old and not denying people health insurance if they have pre-existing conditions. But the question remains how is the Trump administration going to accomplish this?
Because there is no established system that keeps track of who signed up for insurance and who did not. The question is how to determine who did get insurance, who did not, who was possibly forced into buying it and who still does not have insurance.
Some pundits claim that the ACA gave coverage to 20 million Americans who had never had insurance before. Others say, that it was 14 million counting those who were insured but lost their insurance and had to buy new plans under the ACA. Many people feel cheated and overcharged with their health insurance plans under the ACA.
What is next? Some Americans hope that the Trump administration will repeal the and replace the current healthcare system with something that will lower insurance costs, lower premiums and open the market up with more insurance choices.
According to president-elect Donald Trump, there is a pressing need for free market reforms in the health care industry. It appears from campaign speeches and recent media interviews that in order to create a free market for health care Obamacare may be repealed.
Mr. Trump has suggested this will happen on day one of his administration taking office. Although he has stated he would seek a total repeal of all aspects of Obamacare, recent media coverage suggests he has taken a slightly different stance on the matter and may agree to retain some aspects of it, such as extending health care coverage to students.
Mr. Trump has stated that by adhering to free market principles his government intends to restore economic freedom and certainty to Americans. He plans to make health care affordable, improve the quality of care available and broaden access to health care.
Health care under a Trump administration may allegedly be accomplished by:
• Congress repealing all or parts of Obamacare. No one should be forced to buy insurance.
• Modifying existing laws inhibiting the sale of health insurance across state lines. Full competition in the industry drives prices down.
• Permit Americans to deduct health insurance premium from tax returns.
• Review Medicaid basic options to allow those who want health insurance to access it.
• Permit Americans to use Health Savings Accounts (HSAs), ensuring they are tax-free and allowed to accumulate.
• Mandate price transparency for all medical professionals, particularly physicians, clinics and hospitals. Americans should be allowed to shop for the best price for procedures, exams or any medical procedure.
• Stop-grant Medicaid to states. State governments can manage Medicaid administration without federal interference. States will be offered incentives to reduce waste and eliminate fraud.
• Remove free market barriers for drug makers that offer reliable, less expensive and safe products. Americans should have more options open to them and be allowed access to less expensive, imported, dependable and safe drugs.
