What Does The 2016 Election Mean for ACA?

After hard-fought campaigns by both candidates, Republican candidate Donald Trump has been elected the 45th president of the United States. Trump’s victory in the election, along with Republican majorities retained in both the Senate and House of Representatives, will likely have a significant impact on a number of compliance issues over the next four years, including President Barack Obama’s hallmark health care reform legislation, the Affordable Care Act (ACA).

So, what does it mean for your business?

Short answer: it is still much too early to know for sure.

Due to the sweeping Republican victories seen in this election, it is likely that some changes will be made to the ACA over the next four years. While it is largely unclear, at this time, what those changes will look like, Republicans in the past have suggested the following:

• Full repeal of the ACA, with or without a potential replacement health care reform legislation;
• Partial repeal of key provisions (such as the individual and employer mandates), while retaining some less controversial provisions;
• Changes to the Medicare and Medicaid programs; and
• Implementing new policies intended to expand coverage and lower health care costs.

Keep in mind that president-elect Donald Trump will not take office until he is inaugurated on Jauary 20, 2017. This means that, despite the coming change in power, there will likely be no significant legislative or regulatory changes prior to 2017. As a result, employers should continue to prepare for upcoming requirements and deadlines to ensure full compliance.

These may include:

• Employer Shared Responsibility Rules. The ACA requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their full-time employees (and dependent children). Penalties can apply for each month in which an ALE does not offer this required coverage.
• Employer Reporting of Coverage. Employers must also report information under Sections 6055 and 6056 to the IRS and to certain individuals about the coverage they offer or provide during the year. Returns and statements for each calendar year are due at the beginning of the following year.
• Changes to ACA Limits for 2017. Several dollar limits are adjusted each year, and employer-sponsored plans should be updated to reflect those adjusted limits. For example, the out-of-pocket maximum increased to $7,150 for self-only coverage and $14,300 for family coverage for the 2017 plan year.
• Summary of Benefits and Coverage (SBC). Health plans and issuers must provide an SBC to participants and beneficiaries that includes information about health plan benefits and coverage in plain language. The Departments issued a new SBC template and related materials to be used for health plans with open enrollment periods or plan years beginning on or after April 1, 2017.

Bottom Line: Again, potential changes to ACA are nothing more than speculation at this point. We will continue to monitor the changes and provide our clients with timely updates. We will also be providing a GKG University seminar on this topic in early 2017. In the meantime, employers should continue to prepare for upcoming requirements and deadlines to ensure full compliance.