The President’s New Executive Order: How Does it Affect ACA?

President Trump signed an executive order to begin dismantling the Affordable Care Act (ACA), after Congress’ failure to repeal it earlier this year. The order, signed on October 12, 2017, is intended to reform the U.S. health care system by expanding choices and increasing competition to bring down consumer costs.

The executive order asks the Departments of Labor, Health and Human Services, and the Treasury (Departments) to consider:

• Expanding coverage through low-cost, short-term, limited-duration insurance (not subject to ACA’s minimum coverage requirements)
• Relaxing regulations on association health plans, allowing individuals and small businesses to purchase health insurance policies across state lines to avoid certain ACA requirements
• Expanding employers’ ability to offer HRAs (Health Reimbursement Arrangements) and allow them to be used for individual health insurance premiums

The executive order does NOT make any specific changes to existing regulations. It is a broad policy directive by the President that directs federal agencies to issue new regulations or guidance to implement the order’s policies. Until additional guidance is issued and takes effect, ACA regulations continue to apply.

Employers should continue to prepare for upcoming ACA requirements and deadlines to ensure full compliance. Download this bulletin to learn more.