Health Care Reform is Dead – Long Live Health Care Reform

By Stephen MacGuidwin, Esq., Marsh & McLennan Agency, LLC – Midwest Region

September 30, 2017, marked the deadline for Republicans to repeal and replace the Patient Protection and Affordable Care Act (“ObamaCare”) using the budget reconciliation process. The process would have allowed Republicans to enact their own health care reforms by simple majority votes in the House and Senate—both of which are under GOP control— rather than the regular order, which requires 60 votes in the Senate to avoid a filibuster.

As we know, the House GOP narrowly passed a repeal-and-replace bill in May (the “American Health Care Act”). The Senate GOP, however, failed to muster 50 votes from its 52-member caucus to pass a similar measure. As a result, pundits declared an end to Republicans’ health care reform efforts. But, is that really the case?

To be clear, the Affordable Care Act remains the law of the land. But, employers should stay tuned to Washington in three key areas in late 2017 and early 2018:

1. Health Insurance Tax: The Affordable Care Act includes a Health Insurance Tax (HIT) on insurance companies that offer fully-insured health coverage. Consulting firm Oliver Wyman forecasts that HIT will cause a 2.6% increase in employer sponsored health insurance premiums in 2018. Congress passed a bipartisan moratorium on HIT for 2017, and employers should watch efforts to enact a similar freeze for 2018.

2. IRS Enforcement of Employer Mandate Penalties: To the surprise of many, the IRS still has not issued any penalty notices to employers for violating the ACA’s employer mandate in 2015 or 2016. But in August, the IRS reminded employers that it intends to fully enforce the ACA and stated that it is ready to begin assessing employer mandate penalties. If the IRS takes action to collect the estimated $228 billion in ACA penalties, there could be renewed efforts to repeal this unpopular tax.

3. Budget Reconciliation, Part 2: The September 30th deadline marked the end of budget reconciliation for the Fiscal Year 2017 budget. But many Republicans are calling for similar budget reconciliation instructions to be placed in the FY 2018 budget. If included, Republicans will have another opportunity to deliver on a longstanding campaign promise before the 2018 mid-term elections.

If you have questions about employment benefits issues or insurance laws, turn to a BBB Accredited Business like Marsh & McLennan Agency, LLC – Midwest Region.