Tax Alert: Businesses still need to remain compliant with the ACA
The planned House of Representatives vote on the American Health Care Act (AHCA) was postponed on March 24, giving confirmation that the Affordable Health Care Act (ACA), also known as Obamacare, is still the health care law to be followed.
The AHCA is the Republican-sponsored legislation designed to begin the process to repeal and replace the ACA. The vote delay was decided on due to the uncertain passage of the AHCA, which has generated a lot of discussion in the last several days about not only the future of this reform but what it will take for other tax reforms to make it to the agenda for a vote. Now that the ACA repeal and replace AHCA legislation is in a holding period, more developments on tax reform will begin to surface.
Does this mean I should be doing something different related to health insurance for 2017?
Simply put, no. If you have signed up for health insurance as required by the ACA, you are in compliance. However, if you haven’t purchased health insurance, then the potential penalties under the ACA may apply. Applicable large employers also still need to provide health insurance coverage as required by the ACA.
It’s difficult to anticipate how the postponed AHCA vote will impact President Trump’s executive order that was put in place on January 20 in anticipation of repeal of the ACA. For 2018, things may change as health insurers need to decide this spring on providing health insurance via the exchange.
We will continue to keep you updated on these developments. In the meantime, don’t hesitate to contact us with questions on the ACA requirements or the pending tax reform issues.