Trumping the Affordable Care Act? Not So Fast – Impact of Executive Order on Employers Unclear

Matthew P. Chiarello • February 7, 2017

On January 20, 2017, President Trump signed an Executive Order (“ Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal ,” hereinafter referred to as the “Order”) relating to the future of the Affordable Care Act (“ACA”).  The stated goal is to direct the agencies (IRS, HHS, and DOL) to waive or defer provisions of the ACA that would “impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products or medications.”  Notoriously absent from this list is any mention of employers or plans. 

From an employer’s perspective, this Order permits few, if any, changes.  The Order appears to be directed toward addressing the individual mandate, and other less favorable requirements, rather than the provisions of the ACA that tend to impact large employers.  Most notably, the Order does not grant relief to employers regarding reporting requirements under Code Sections 6055 and 6056, the large employer penalties under Code Section 4980H, or the Public Health Service Mandates that apply to employer group health plans, such as coverage for children to age 26, the ban on preexisting condition exclusions, no lifetime limits on essential health benefits, etc.  For additional information on employer reporting requirements, see our November 28, 2016 blog post “ A Little Breathing Room: IRS Extends ACA Reporting Deadline and Good Faith Penalty Relief .”

It remains to be seen what the IRS, HHS, and DOL will do in reaction to this Order.  Until the agencies issue additional guidance with more specificity, employers should continue to comply with the requirements of the ACA. 

For additional information regarding Section 6055 and 6056 reporting requirements and large employer penalties, see our November 9, 2016 “ 2016 End of Year Plan Sponsor ‘To-Do’ List – Health & Welfare .”

 

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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