Potential Impact to Employee Benefits Post Election

Now that the election is over, one of the significant questions people are asking is can President-elect Donald Trump repeal and replace the Affordable Care Act?

The answer is no, at least not right away. Repealing is relatively simple, but replacement would be very difficult. The number one issue with repealing is that over 20 million people who have health care coverage would now be without. In California more than 5 million people have obtained health insurance through Covered California or expanded Medi-Cal.

Going back to March 31, 2016, 85% enrolled through the exchange have consistently received subsidized premiums. The most popular features of the ACA has been preventive care services, coverage up until the age of 26 for dependents (regardless of student status) and no pre-existing condition exclusions. The most unpopular features are the high out-of-pocket risk to the insured, significant rate increases, new taxes, employers being required to provide health insurance and mandatory tax filings. The optimal approach would be to repeal. This can be done by a complex reconciliation process and requires a simple majority (51 votes) to pass. It is likely any repeal will be delayed until a replacement plan is ready to be rolled out.

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