ACA Developments – Complexity and Confusion Continues
The unusual Department of Justice decision to forego the defense of the individual mandate and pre-existing conditions provisions of the Affordable Care Act (ACA) earlier this month signals the slow unravelling of the controversial Obama-era legislation. For employers, however, there's no relief yet from the confusing and complex record keeping requirements of the act.
With the repeal of the tax component of the individual mandate for healthcare coverage in December's tax bill, the constitutional legs under the ACA seem shaky. Last week's DOJ decision concurred with the plaintiffs in a Texas court case that challenges the constitutional basis for the individual mandate and links the provision for pre-existing conditions. Even if the healthcare act isn't overturned, ensuing court decisions could render it unworkable.
Meanwhile, cost, complexity, and confusion continue for businesses. The employer mandate requires significant data tracking and reporting from companies, regardless of the quality of the health benefits that they may offer to employees. Several trade associations, led by the ERISA Industry Committee (ERIC), have submitted a letter to the U.S. Department of the Treasury, the Department of Health and Human Services, and the IRS seeking the suspension of employer requirements on the assumption that the employer mandate will ultimately be repealed.
There's more to this story in the News section of the GEA website, including a short checklist for ACA reporting.
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