2013 Health and Welfare Planning: ACA Implementation Continues

53 Pages·2012·0.2 MB·English

PRESENTATION TITLE
2013 Health and Welfare Planning:
ACA Implementation Continues
July 19, 2012
© 2012 Kilpatrick Townsend & Stockton LLP
Presented by:
Mark L. Stember
[email protected]
202.508.5802
Martha L. Sewell
[email protected]
919.420.1781
Karen D. Martinez
[email protected]
404.815.6258
2
Supreme Court Commentary and Next Steps for Employers
3
Supreme Court Recap
Individual Mandate Recap

• Fails under the Commerce Clause
• Fails under the Necessary and Proper
Clause
• Upheld under the Taxing Clause

4
Supreme Court Recap
Medicaid Recap: Pre-Decision

• ACA expands Medicaid by requiring
states to extend coverage to generally
anyone with an income less than 133%
of federal poverty level
• If states refused, they would lose all
federal Medicaid funding

5
Supreme Court Recap
Medicaid Recap: Post-Decision

• States now have a choice whether to
implement the Medicaid expansion
• States that do not implement the
expansion only lose funds with respect
to the expand requirements

6
Supreme Court Recap
Recap of Court Reactions

• Legal scholars mostly praised the
opinion
• Political commentators either praised or
criticized the opinion mostly based on
political affiliation

7
Supreme Court Recap
Elections Are Next ACA Hurdle
* Denotes current status Democratic Republican President
President*

Republican House and Status quo Likely change in implementation

Democratic Senate* and regulations; likely no repeal
Democratic House and Status quo Likely change in implementation
Senate and regulations; likely no repeal
Republican House and Status quo Repeal likely
Senate
Democratic House and Status quo Likely change in implementation
Republican Senate and regulations; likely no repeal

8
Supreme Court Recap
Potential Future Legal Challenges – Tax Credit
and Employer Penalty Issues

• If no state exchange, the federal exchange applies
• Statute suggests tax credits and employer penalty
only apply to a state exchange
• IRS rules treat state and federal exchanges the same
• Some suggest IRS overstepped its regulatory
authority

9
Supreme Court Recap
High Level Impact on Employers

• ACA will continue to apply to 2012 and for 2013
annual enrollments
• Closely monitor regulatory developments
– None of the 2014 guidance has been released
• Changes as a result of the election could not be
implemented until after a new Congress and
Presidential inauguration
• Administrative delay of 2014 rules, exchanges and
the employer penalty provisions is possible
regardless of election results

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