Nearly two weeks ago, several Republican Senators announced their opposition to the Better Care Reconciliation Act, the Senate’s Affordable Care Act (ACA) repeal and replace bill. Their opposition meant that the Senate would not have the simple majority vote required to pass the bill, and the Republicans’ long promised effort to repeal and replace the ACA seemed to end.
As if managing compliance with the Affordable Care Act wasn’t confusing enough, the election of Donald Trump and the appointment of Rep. Tom Price as Secretary of Health and Human Services has introduced even more uncertainty.
The future of the Affordable Care Act (ACA) has been shaky ever since Nov. 8. While it is clear that President-elect Trump intends to repeal and replace the act in some way, shape, or form, what exactly that replacement looks like is a little murkier.
UPS recently sent a memo to their employees informing them that they will be cutting spousal coverage. They cite the Affordable Care Act as the impetus for change in their coverage. This is largely related to the “Play or Pay” tax of the law. Under the “Play or Pay” tax, employers are required to offer coverage to at least 95% of their full-time employees and their dependents. Detailed regulations clarify that “dependents” means children only, and does not include spouses. This means that as long as employers offer an employee-only plan and an employee plus children plan, they would be in compliance with the regulations, and thus avoid tax liability. This is one strategy that an employer can take to comply with regulations, but also cut costs. It will be interesting to see if UPS’s major competitors will follow suit. I believe that we will see trends start to break out by industry when it comes to new coverage options. This is just a sign of what’s to come, so keep your eyes open!
Several weeks ago the Obama administration announced that they would be delaying online enrollments for the SHOP exchange, where small businesses can come and purchase coverage.
President Trump is wasting no time when it comes to health care reform—at least on a symbolic level.
Many aspects of health care reform have been divisive issues for years, but this election cycle once again brought health care to the forefront of Americans’ minds. Some look at the election of Donald Trump as evidence that half the nation is behind his calls to repeal and replace the Affordable Care Act (ACA)—but is this actually true?
After a long election cycle and a seemingly longer night, the country finally has a President-elect. On Jan. 20, Donald Trump will assume the role of commander in chief, and if he holds true to his campaign promises, the Affordable Care Act will be one of the first concerns he addresses.
For those who have been waiting for the repeal of the Affordable Care Act since its inception, it’s still too early to celebrate—and definitely too early to put aside your 1095-Cs for the 2016 reporting season.
As companies around the country conduct their own impact analysis and model various scenarios, we see them continuing to define and outline their Affordable Care Act strategy and announce aspects of their plan. Target has become the most recent addition to the list but certainly not the last.
We are now officially in the year 2014. In less than one year the Employer Shared Responsibility Tax will be underway and Applicable Large Employers will be responsible to offer their Full-Time employees health care coverage or a pay a penalty tax on their behalf.