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Home Affordable Care Act Election Day Recap and Potential ACA Changes

Election Day Recap and Potential ACA Changes

3 minute read
by Robert Sheen
2020 Election Day Recap | ACA Times

3 minute read:

Heading into Election Day, a record-breaking one million Americans cast their ballots early, creating a myriad of potential challenges for determining a clear victor in the 2020 presidential election. 

As to be expected with one of the most unique presidential elections of our time, there are still a number of uncertainties surrounding our next president, such as accounting for mail-in and absentee ballots. As Biden said, “It ain’t over till every vote is counted.” Key battleground states Pennsylvania and Georgia closed shop relatively early on Election Day and will resume today. With a number of mail-ballots and absentee ballots to be tallied in states across the country, it is presumed that a clear winner will not be identified until the end of the week, at the very least.

Democrats, however, are in a position to strengthen their majority in the House of Representatives and if a winner cannot be decided, Democrats may have an advantage. According to an article by The Washington Post, “If neither Trump nor Biden wins 270 electoral college votes, the House has the ability under the Constitution to pick the next president when it convenes in January.” 

As we’ve previously discussed, the implications and effects of the new presidential term are far-reaching and the future of the Affordable Care Act will once again face a host of potential changes. 

If Joe Biden is declared the new U.S. President, Americans should anticipate a number of advancements to the Affordable Care Act. For one, it is possible that the Biden Administration will reinstate the federal Individual Mandate penalty, which would likely be supported, as many states have already enacted their own penalties for residents that fail to obtain coverage. If this is the move the administration takes, the argument regarding the constitutionality of the ACA without the Individual Mandate penalty may be moot. 

A Biden administration would also likely roll back association health plan rules, or even completely remove them.The Trump administration made adjustments to the rules of these types of plans and essentially lessened the requirements for employers forming these types of associations. However, a consequent problem was that this made it easier for organizations to offer less than comprehensive health coverage to employees and exempt certain employers from the ACA’s small-group health insurance rules.

If Trump wins, we can anticipate more changes to the ACA but not quite a replace and repeal, which he campaigned on in 2016. As a reminder, next week the Supreme Court will hear oral arguments regarding the constitutionality of the ACA and whether the remainder of the healthcare law should stand, despite the repeal of the federal Individual Mandate.

While the recently sworn in the U.S. Supreme Court Justice Amy Coney Barrett previously criticized the ACA, she has pledged to judge independently and her decision on the constitutionality of the ACA could catch worrisome Democrats and confident Republicans off-guard.

Employers should take comfort in the fact that an area of the ACA that will likely remain unchanged, regardless of who wins the election are the Employer Shared Responsibility Provisions, commonly referred to as the Employer Mandate

Under the ACA’s Employer Mandate, Applicable Large Employers (ALEs), organizations with 50 or more full-time employees and full-time-equivalent employees, are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is affordable for the employee, or be subject to Internal Revenue Code (IRC) Section 4980H penalties.

For now, the ACA remains law of the land and employers are encouraged to make ACA compliance a priority, especially with penalties increasing in 2021. Contact us to learn about how ACA Complete can help your organization comply with the healthcare law.

 

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Election Day Recap and Potential ACA Changes
Article Name
Election Day Recap and Potential ACA Changes
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With Election Day behind us, absentee and mail-in ballots across the country are still being tallied. Regardless of the 2020 winner, the ACA is likely to remain, with potential changes in varying directions.
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The ACA Times
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