ACA Repeal and Replace, What Employers Need to Know

President Donald Trump has only been in office a week, and already, he’s working to repeal and replace the Affordable Care Act. Congress has already approved a budget plan to repeal major parts of the ACA, but the details of exactly how that will happen have yet to be ironed out. Even still, President Trump has promised the new health care plan will provide insurance for everybody, and cost less than it currently does. He also says prices on drugs will be lower.

On his first day in office, President Trump signed an Executive Order. What does that mean for you and your employees? Well, not much right now. The order gives a signal to federal agencies such as the DHHS, DOL, IRS, and CMMS to make changes to the ACA. Since the ACA is so deeply complex and involves multiple agencies, it is unknown if we’ll see any changes for at least several weeks, if not several months. Remember, the ACA took many years to implement and will require extensive planning and cooperation to make changes that meet the new administration’s goals. Those include:

• Increase access in health insurance and cover more people
• Restrain the growth of insurance premiums
• Offer more choices to consumers, including the ability to shop insurance in different states 

As for employers, it’s business as usual, at least for now. Employers with 50 or more full time or full time equivalent employees must offer at least minimum value coverage at an affordable cost to the employees. Here’s the breakdown: 

• Employers must still offer coverage to all employees who work 30 hours or more per week.
• Employers need to be aware that both (a) and (b) penalties are still a real concern.
• Employers must report the employee’s group health cost on their W2s.
• Employers must report the complex employee data on the 1094 and 1095 forms by the March deadline. 

Individuals must still obtain minimum essential coverage or pay a tax penalty. For now, tax subsidies will continue. Enrollment in the Federal Exchange Marketplace is open through the end of this month. 

At FrankCrum, we’ll be watching and waiting and keep you up to date as things change with the ACA in the coming months. In the meantime, know that you have a team of knowledgeable and trusted advisors as a client of FrankCrum. If you have any questions, we’re here to help!