Skip to content

menu

Proskauer Rose LLP logo
HomeAbout UsOur TeamPodcast All Topics
Subscribe
Search
Close

Employee Benefits & Executive Compensation Blog

The View from Proskauer on Developments in the World of Employee Benefits, Executive Compensation & ERISA Litigation

Home > USPSTF > Health Care Reform Update – American Health Care Act Shelved

Health Care Reform Update – American Health Care Act Shelved

By Damian A. Myers on March 27, 2017

The American Health Care Act (“AHCA”), the legislation intended to “repeal and replace” the Affordable Care Act (“ACA”), was shelved on Friday, March 24, 2017, ending for now efforts to repeal the ACA. The AHCA, described in our recent blog entry, was introduced on March 6, 2017 and immediately faced strong opposition from both sides of aisle.  After failing to negotiate a compromise, President Trump issued an ultimatum to Congress to pass the legislation by March 24, 2017 or else the ACA would remain in place.  Unable to muster enough support for the AHCA, Congress withdrew the bill.

We now enter a new period of uncertainty with respect to the future of health care reform.  Consistent with President Trump’s ACA executive order issued on his first day in office, his administration could take regulatory and sub-regulatory steps to weaken various ACA requirements as they have developed over the years.  It is also possible that, in somewhat of a reversal of course in light of the failure of the AHCA, his administration would leave ACA unchanged under the belief that it is not sustainable and will eventually fail on its own.

Similarly, though some Republican members may continue to push for repeal and replacement, others may be content to leave ACA unchanged in the belief that it will fail on its own.  Still others in Congress, potentially on a bipartisan basis, may look to other possible changes in health care law that do not go to the heart of the ACA structure in the same way as the AHCA would have.  For example, stand-alone legislation related to health savings account expansion is currently pending.  Legislation that would repeal the so-called Cadillac Tax has also been introduced.  Bills that would repeal other ACA-related taxes and that would modify rules related to wellness programs have also been drafted.  Whether any of these bills will make it to a vote is uncertain.

Despite this uncertainty, employers and plan administrators should continue to comply with the ACA’s mandates, including the employer shared responsibility mandate and ACA reporting.  Importantly, instead of being delayed until 2025, as would have been the case under the AHCA, the Cadillac Tax is scheduled to become effective beginning in 2020.  Though this is more than two years away, employers should begin planning now to minimize the impact of the tax.

Posted in Affordable Care Act, American Health Care Act
Tags: ACA, Affordable Care Act, American Health Care Act, Cadillac Tax, COBRA, Health Care Reform, health savings account, HSA, Premium Tax Credit
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Related Posts
Updated Health Care Reform Legislation Comparison Chart
July 14, 2017
CBO Releases Updated Cost Estimate of American Health Care Act of 2017
May 26, 2017
House of Representatives Passes American Health Care Act – What it Means and Next Steps
May 4, 2017
Subscribe to Employee Benefits & Executive Compensation Blog
Subscribe to this Blog

Employee Benefits & Executive Compensation Blog

Proskauer Rose LLP logo
Boca Raton|Boston|Chicago|Hong Kong|London|Los Angeles|New Orleans|New York|Paris|São Paulo|Washington, DC
Twitter LinkedIn RSS
DisclaimerPrivacy Policy

About Proskauer Rose LLP

We are 800+ lawyers serving clients from offices located in the leading financial and business centers in the Americas, Europe and Asia. The world’s leading organizations, companies and corporations choose us to be their representatives in their most critical situations. Moreover, they consider Proskauer a strategic partner to drive their business forward. We work with asset managers, private equity and venture capital firms, Fortune 500 companies, major sports leagues, entertainment industry legends and other industry-redefining companies.

Visit Proskauer.com

Topics

Archives

Copyright ©2025, Proskauer Rose LLP. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo

Proskauer and our platform provider LexBlog each use cookies to personalize content and ads, to provide social media features and to analyze traffic. Each of us also share information about your use of our site with our social media, advertising and analytics partners. If you are happy for us to store these cookies on your device please click ‘Accept Cookies.' For more information, please see here and here.

OK