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How does the executive order affect current guidance in relation to the ACA?

Late January, President Trump signed an executive order that urges his administration to repeal and replace the Affordable Care Act (ACA). The order allows legislators to fight the current health care system by adding new rules and regulations. The executive order points the administration to allow states to decide the changes in healthcare policy.

This order sends a signal to the American people that health care laws are coming. The order itself, however, does not affect the ACA directly. In fact, the executive order is broad in scope and it raises a number of questions such as:

  • How will changes impact employers offering group health care plans?
  • How does the order affect what is currently in place under the ACA rules and regulations?
  • If the mandate for individuals to have minimum essential health insurance or pay a penalty is suspended, how does that affect employers?

With so many questions to be answered, the plan to replace ACA is not going to be immediate. Given the nature of the legislative process, checks and balances, public input on various issues, various legal issues and political agendas, it may be several years before the ACA is replaced.