Executive Order Allows Reduction of ACA Burdens

An executive order signed January 20 by President Donald Trump gave wide latitude to federal agencies and states by allowing them to minimize the economic and regulatory burdens of the Affordable Care Act.

Under the order, agencies and states were allowed to waive, defer, offer exemptions or delay “the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, health care providers, health insurers, patients, recipients of health care services, purchasers of health insurance, or makers of medical devices, products, or medications.”

The order likely includes employers, which may purchase health-care insurance. Additionally, the order requires that revisions to ACA regulations be subject to the notice and comment process, which may take months to carry out.

The ACA encompasses a number of payroll-related requirements for employers, especially in determining if companies applicable large employers. The designation, based on total hours worked by full-time employees and full-time equivalent employees, is used for reporting whether minimum essential health coverage was offered to full-time employees and dependents. Employers must provide special reports to the IRS and employees on verifying health-insurance offers and substantiating the value of essential minimum coverage.

The order came a week after the House passed a budget resolution (H.R. 227-198) that could lead to the repeal of the health-care law.

TLC’s ACA Monitor can help you determine your applicable large employer status, classify full-time and full-time equivalent employees, and produce the required reporting. Be sure to contact us to begin utilizing this feature.

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