ACA Update: Trump's Executive Order

President Trump didn’t take long to sign an executive order addressing the Affordable Care Act (ACA) following his inauguration. It is important to note, though, that the executive order is broad and does not specifically address any ACA provision. Thus, no ACA provisions or requirements have been eliminated or delayed at this time and employers should continue to prepare as scheduled to remain compliant until further notice.

What’s Expected?

The executive order puts forth the first steps to the repeal of the ACA and is intended to:

  • Minimize the ACA’s economic and regulatory burdens
  • Prepare to afford states more flexibility and control to create a free and open health care market

Immediate Impact

The immediate impact will likely be small as it will take time to implement new policies, regulations, and other guidelines to carry out the directives. In time, it is clear that the executive order is intended to allow insurers to sell policies across state lines in an effort to increase free market competition, which is something President Trump has long supports. Until more information comes out regarding the repeal and replace of the ACA, employers should continue to prepare as expected.

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