The ACA Repeal Process Begins

Employee Benefits On Jan. 13, 2017, the U.S. House of Representatives passed a budget resolution for fiscal year 2017 to begin the process of repealing the Affordable Care Act (ACA).

The budget resolution does not itself repeal the ACA, but it does pave the way for Republicans to use special budget procedures to repeal and likely replace major parts of the law.

Because both the House and Senate have approved the budget resolution, committees from both chambers will now begin the process of drafting repeal legislation. If this legislation is passed in both the Senate and the House by at least a simple majority vote, it would then go to President-elect Donald Trump for approval.

A full repeal of the ACA cannot be accomplished through the budget reconciliation process. A budget reconciliation bill can only address ACA provisions that directly relate to budgetary issues—specifically, federal spending and taxation.  This includes the individual mandate, the employer shared responsibility rules and the issuance of federal exchange subsidies.

House and Senate committees have targeted Jan. 27, 2017, as the deadline to draft a budget reconciliation bill following the budget resolution, although some have indicated that the process may take longer. Once drafted, a reconciliation bill can be passed by both houses with a simple majority vote.

It is the commitment of AssuredPartners NL to remain at the forefront of the ACA changes and communicate them to our clients in a timely manner as they unfold over the next few months.

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