Trump Administration Shakes Up the ACA Through Executive Order

The issues surrounding healthcare continue as President Trump issued an Executive Order this past week. According to the latest Executive Order, the executive branch will “facilitate the purchase of health insurance across state lines and the development of operation of a healthcare system that provides high-quality care at affordable prices for the American people.

The Executive Order also declares that the ACA, also known as Obamacare has limited health choices and prolonged the charging of large premium increases. What the EO seeks to do is to offer three options to consumers; Association Health Plans (AHPs); short-term, limited-duration insurance (STLDI); and Health Reimbursement Accounts (HRAs) a way of potentially expanding health insurance at lower premiums and increasing the number of potential options for financing health insurance.

President Trump through the order has instructed the Secretary of Labor to issue a regulation expanding the availability of AHP’s within a period of 60 days. The Executive Order further advised the Secretary of Labor to propose regulations that would allow more employers to form AHP’s and for the Department of Labor, Health and Human Services and the U.S. Treasury to issue guidelines that would expand the availability of STLDI and HRA’s to workers.

In spite of Republicans and Democrats in Congress working together to try to continue subsidies, while the President seemed to support it initially, he has since backed away from his earlier position causing further confusion.

The PEO industry, on the whole, is unable to determine what the impact of these latest Executive Orders and statements by the President will be to healthcare benefits being offered to workers and their families. Insurance providers have stated that on average the increase in premiums across the board is likely to be at least 20% higher than they are at present. How the PEO industry could be affected is that if the Trump Administration is able to get around current ACA restrictions on AHPs by issuing regulations that would broaden the current definition of what exactly constitutes an organization being considered an “employer. Also of interest for PEO’s and their clients is how HRA’s will potentially affect the current marketplace for group health insurance policies.

Providing healthcare benefits for workers and their families is one of the most important parts of any benefits package. Making sure that prices are competitive and comprehensive is equally important. Today’s ever-changing healthcare landscape has created concerns for everyone. At NetPEO, we are committed to paying close attention to ways that all of the new rules and regulations can affect you and your company’s and your worker’s bottom line. We want your organization to be fully informed and compliant to meet the challenges of today’s healthcare marketplace for your company and for your workers.

NetPEO offers the full range of HR services including payroll, employee benefits, liability management for employers, brokerage services, and employee leasing. Contact us today to discuss your company’s current needs and to schedule a free assessment.