ACA Changes and Delays

29 Dec ACA Changes and Delays

During my conversations with my clients, I am often asked what is going to happen to the Affordable Care Act once the new President is elected, especially if it is a Republican candidate.  My answer is always the same.

IT WON’T BE REPEALED:

I believe that we have traveled too far down the road for an outright repeal of the legislation.  Businesses large and small have spent vast resources on complying with the intricacies of the law, and to suddenly repeal it, would throw the market into chaos.  It would also displace millions of lower income Americans from coverage they were able to purchase under the law.

BUT, SOME THINGS WILL BE CHANGED:

The rules for variable hour employees in my opinion are too clunky to be implemented properly.  So I would expect to see rule changes and clarifications around this.  I also always believed the Cadillac Tax (which was supposed to be implemented in 2018) was going to go away.  The 40% excise tax was just too broad of a weapon to combat a company giving away too rich of benefits.  The rates an organization pays for coverage are determined on many variables- many of which are NOT controllable by the company, which this tax was going to adversely affect too many organizations to be implemented….

CADILLAC TAX DELAYED

And the other day, Congress and the President delayed the tax under the Consolidated Appropriations Act, 2016.  The Cadillac Tax has now officially been postponed for 2 years.  I believe this is just the first step in its eventual demise.  Also under this funding package, the Health Insurance Industry Fee for 2017 (not 2016 unfortunately) was suspended, and the 2.5% medical devices tax was suspended (that I don’t believe has been implemented yet)….

More changes are on the way, and I’ll keep you informed.

Gran

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