In one of his first actions after taking office, President Trump issued an executive order instructing executive departments and agencies to exercise the maximum legal authority to “waive, defer, grant exemptions from, or delay the implementation” of the Affordable Care Act. This order comes on the heels of recent congressional action. Specifically, on January 13th, Congress approved a budget resolution instructing congressional sub-committees to draft repeal legislation before January 27th through a process known as “reconciliation.” The reconciliation process can be achieved without the votes of Democrats in the Senate, but the process has significant limitations - reconciliation allows only the Act’s tax and expenditure provisions to be repealed. Effectively, this means that more substantive repeal and replacement would have to occur later and require some support from Democrats in the Senate.
In tandem, the foregoing actions leave employers, wage earners and insurers with a host of unanswered questions. For example:
At this point, there are too many uncertainties to provide definitive answers to the questions above. However, we expect some clarity in the coming weeks as the new administration settles into office. For further information on this topic and related issues, please join us on February 1st for a breakfast briefing entitled “2017 Tax and Regulatory Update: Expectations under the Trump Administration.” You can RSVP here.