NFIB’s Director of Government Relations, Kevin Kuhlman, recently brought NFIB Pennsylvania members up to speed on changes to Obamacare. He explained what Congress has done with regards to repealing that law, and talked about what plans are being floated as possible replacements. Kuhlman explained that NFIB is advocating on Capitol Hill on behalf of our members to be sure lawmakers and the new administration know what’s important to small business. Below is a summary of that discussion.
Recent Obamacare changes:
Legislative changes
IRS employer payment plan penalty partially repealed and restored in limited basis (December 2016)
Regulatory changes
Employer mandate 1095 Form distribution deadline delayed to March 2 (December 2016)
1094 Form deadline unchanged (February 28 or March 31 for e-file)
Important small business tax note
Small business health insurance tax credit expired (if claimed in calendar years 2014-2015)
On repeal of Obamacare
The House and Senate approved a measure that would allow the Affordable Care Act to be repealed with a single majority vote in each house and it would not require a presidential signature. Congress may take up an actual repeal vote in mid to late February.
Likely to be included in repeal – spending/revenue measures
Employer mandate and individual mandate PENALTIES
Tax increases (HIT, Cadillac tax, Medicare surtax, NII tax, CDHP limitations, Medical device tax)
Medicaid expansion
Premium tax credits
Likely to be Excluded in repeal – provisions that do not impact federal budget
Employer mandate and individual mandate COMPLIANCE
Insurance product requirements (community rating, guaranteed issue, EHB, annual & lifetime benefit cap prohibition)
Other compliance/reporting requirements
How the replacement process is being divided
“Bucket 1” – Repeal Obamacare/limited replacement
Enhancements to CDHPs (health plan paired with a spending account for out-of-pocket costs such as a Health Savings Account (HSA) or Integrated Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA)
“Bucket 2” – Trump Administration regulatory adjustments
Departments of Health and Human Services, Treasury, and Labor exercise administrative authority
For example, Health and Human Services – adjust insurance market requirements; Treasury/IRS – eliminate reporting requirements
“Bucket 3” – Replacement legislation
Unlikely to be comprehensive; more likely attach policies to must-pass legislation. For example, Debt ceiling approval, government-funding bills (appropriations, continuing resolution, omnibus), other health program reauthorizations
What replacement plans exist?
Senate
Sens. Hatch (UT) and Burr (NC)
Sen. Cassidy (LA)
House of Representatives
Speaker Ryan – A Better Way agenda document
Cong. Tom Price – Empower Patients First Act
Cong. Phil Roe – Republican Study Committee proposal
Themes
Repeal the ACA
Tax credits for individual market consumers
Association health plans for small businesses
Capping or eliminating tax preference on employer-sponsored insurance
For what is NFIB advocating?
Lower costs
Focus on insurance cost drivers (Administrative/Legislative)
Fewer compliance burdens (Administrative/Legislative)
Increased choices/flexibility
Allow small businesses to assist employees with purchase of health insurance on their own (Administrative)
Innovative offering arrangements (Legislative)
Allow small businesses to keep the plan they currently enjoy (Administrative/Legislative)
Protect small businesses’ ability to self-insure (Administrative)
ACA Calendar
January 31, 2017 – Open enrollment for 2017 ends
February 20, 2017 – Goal for reconciliation repeal to be signed into law
February 28, 2017 – Employer mandate Forms 1094 due to IRS (for tax year 2016) if paper filing
March 2, 2017 – Employer mandate Forms 1095 due to employees (for tax year 2016)
March 31, 2017 – Employer mandate Forms 1094 due to IRS (for tax year 2016) if e-filing
Late spring/early summer – Debt ceiling increase
September 30, 3017 – SCHIP authorization expires (replace possibility)
November 1, 2017 – Open enrollment for 2018 begins
