There is no doubt changes are coming to the Affordable Care Act (ACA). However, many are wondering when those changes will occur and what they will look like. Like most acts of government, there will be no major modifications anytime soon. It is easy for GOP leaders to say they plan to repeal the Affordable Care Act, but this process is harder than it looks. It is also unlikely that congress will repeal the entire law, so the focus will be more on what aspects are changing and how does it affect individuals and businesses.
Changes to the ACA for 2017
So far, President Trump has not changed much of the ACA. He issued an executive order stating that federal agencies should use any means possible to delay the requirements of the ACA should it impose a fiscal burden on individuals, the health industry, or states as a whole. Due to the vague nature of the order, the only federal response from the IRS is they do not plan to enforce the requirement that most individuals must possess health insurance as strictly as they have in the past. However, it is still law.
What Happens to Those Insured via the ACA?
The biggest concern for individuals and businesses alike is what happens when congress replaces the ACA. Individuals want to know if they will be without insurance. Businesses want to know how these changes affect compliance and if they will suddenly be in violation of new regulations.
Thankfully, both President Trump and congressional leaders spearheading the initiative agree that a smooth transition is vital. They have no desire to leave individuals without insurance or cause major interruptions to businesses. Their current plan is to repeal and replace the law simultaneously.
While many are concerning themselves with the coming year, 2018 holds fewer answers and more uncertainty. Because of this, more and more insurers are pulling out of the individual market. This is an issue as it is how individuals purchase insurance outside of their employer. Employers need to prepare themselves for an influx of individuals requiring insurance.
Until health care reform is complete, the best solution for employers is to invest in a Bronze level high deductible health plan (HDHP) alongside Group Supplement Health (GAP) plans. GAP insurance can provide coverage where HDHPs prove inadequate. This allows employers to offer compliant health insurance that their employees can afford. To stay up to date with the changing face of ACA as well as learn more about GAP solutions, contact Chelten Consulting.