HR Alert – Healthcare Reform Update

ACA Replacement Legislation Withdrawn

Efforts to dismantle the Affordable Care Act (ACA) have so far been unsuccessful. The House Republicans’ “repeal and replace” bill – the American Health Care Act – was intensely debated but withdrawn on March 24 because it did not have sufficient support. President Trump has indicated that a new healthcare reform bill will not be coming soon. However, this does not mean another effort could not be initiated by legislators.
As we reported in January, President Trump’s first Executive Order signaled the administration’s agenda with respect to healthcare. That Order directed agencies to ease the economic burden of the ACA by not applying penalties when doing so was at the discretion of the agency. So far that directive has not affected any employer obligations.

The proposed legislation contained several payroll-related provisions. It is unclear whether Congress will attempt further changes to the ACA. Employers should continue to comply with the requirements of the ACA.

We’ll be keeping an eye on the healthcare issue, as well as other potential changes to federal employment law and enforcement as a result of the change in administration.