What You Should Know About President Trump’s Executive Order
When President Donald Trump signed an executive order against the Affordable Care Act (ACA) implemented by former President Obama, the purpose of the executive order was to minimize the economic and regulatory burdens of the ACA by repealing it and coming up with a replacement plan. Following are four things you should know about the executive order before President Trump's replacement plan takes place.
The Executive Order Is Limited For Now
President Trump’s executive order directs - Health and Human Services (HHS), Treasury, CMS Administration, IRS, and other agencies. to utilize their power so as to provide each state with more flexibility and control to create a more free and open health care market. Not much can be done until heads of the federal departments are officially appointed to oversee the ACA. Even after appointed, it may still take a while for changes to be implemented.
President Trump's Executive Order Could End The Individual Mandate
The Trump administration aims to eliminate the ACA individual mandate, which requires individuals to carry health insurance or pay a penalty. If the individual mandate was eliminated, the Trump administration assured the country that no one would lose their health insurance under the ACA while a replacement plan is being developed. President Trump's replacement plan will allow patients with pre-existing conditions to buy health insurance using health savings accounts.
The Executive Order Would Create Interstate Insurance Markets
Creating interstate insurance markets, which allows individuals to purchase health insurance across state lines is one of the main goals of the executive order. President Trump is focusing on having the replacement plan truly benefit the patient while improving access to healthcare.
The Executive Order Plans To Cut Taxes
President Trump’s executive order might undo some taxes currently under ObamaCare, including tax on pharmaceutical and insurance companies. The executive order is also encouraging agencies to waive taxes, fees and penalties created under ObamaCare. Many of the revenue-generating taxes of the law are already planning to be cut by Congress. According to President Trump, his team has come up with a tax plan that will benefit Americans and is a great solution to the "failed disaster" that is ObamaCare. Once the healthcare system is sorted out, President Trump said he will go ahead with his tax cut plan.
Being aware of any new healthcare information, policies and legislative changes can benefit your practice from being caught unprepared.
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