Trump’s Order Explained
Trump’s executive order on ObamaCare doesn’t do much directly, but it likely will effect all ACA taxes as direct action is taken under the order.
This means the order is more a mission statement than direction action. Specifically, it orders those in power to do everything with in the law not to enforce ObamaCare’s taxes… and this means it is likely the mandates’ fees won’t stick and many taxes on businesses will be repealed.
On the other hand, it doesn’t mean that tax credits and cost assistance will go away as a direct consequence. Instead, Medicaid expansion and cost assistance will likely be replaced via action from Congress. It is expected that income-based assistance gets replaced with age-based and Medicaid gets block grant funding at a state level.
This means red-states are likely to get more red-state policies (less regulation on business, less working poor covered) and blue-states more blue-state policies (like the expanded healthcare we have now).
The problem is that defunding and removing taxes has the potential to leave the government in crushing debt, so then they will really have to cut programs or add in other taxes… and if they cut programs we are talking Planned Parenthood funding, EPA, PBS, etc, etc.
So lots to worry about, but the order doesn’t do much of anything right now. Really it just makes it clear that Trump and the GOP are both going to take action to repeal and replace the Affordable Care Act, which is what we were expecting.
You can see the text of the order in full below, or see our Trump Signs Executive Order on ACA page for more details on what Trump’s Executive order Against ObamaCare Actually Does.
BOTTOM LINE: Congress took the first step to gut ObamaCare, Trump just took the second, but this isn’t “the big one”. Keep checking back and we will let you know if and what changes with the ACA. All that is happening now is that the yarn is starting to be unwoven. There is still a thousand questions on the table as to how this plays out in practice. Everyone has the “order”, the next step is for Congress to take action.
FULL TEXT: Trump’s Executive Order (Source)
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release January 20, 2017
EXECUTIVE ORDER
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MINIMIZING THE ECONOMIC BURDEN OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT PENDING REPEAL
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1. It is the policy of my Administration to seek the prompt repeal of the Patient Protection and Affordable Care Act (Public Law 111-148), as amended (the “Act”). In the meantime, pending such repeal, it is imperative for the executive branch to ensure that the law is being efficiently implemented, take all actions consistent with law to minimize the unwarranted economic and regulatory burdens of the Act, and prepare to afford the States more flexibility and control to create a more free and open healthcare market.
Sec. 2. To the maximum extent permitted by law, the Secretary of Health and Human Services (Secretary) and the heads of all other executive departments and agencies (agencies) with authorities and responsibilities under the Act shall exercise all authority and discretion available to them to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.
Sec. 3. To the maximum extent permitted by law, the Secretary and the heads of all other executive departments and agencies with authorities and responsibilities under the Act, shall exercise all authority and discretion available to them to provide greater flexibility to States and cooperate with them in implementing healthcare programs.
Sec. 4. To the maximum extent permitted by law, the head of each department or agency with responsibilities relating to healthcare or health insurance shall encourage the development of a free and open market in interstate commerce for the offering of healthcare services and health insurance, with the goal of achieving and preserving maximum options for patients and consumers.
Sec. 5. To the extent that carrying out the directives in this order would require revision of regulations issued through notice-and-comment rulemaking, the heads of agencies shall comply with the Administrative Procedure Act and other
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applicable statutes in considering or promulgating such regulatory revisions.
Sec. 6. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE,
January 20, 2017.
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Donald
We need a single payer system, with cost controls. No other way out. Greed has killed the health care as we know it.
ObamaCareFacts.comThe Author
We agree a type of universal healthcare system is needed, of these Single Payer has a lot of perks. For anyone interested, you can learn more about these types of systems here: https://obamacarefacts.com/single-payer/
Dan Powers
It doesn’t make sense, does this stop the penalty on the tax payer or not. Is this just a smoke screen, or has something changed?
ObamaCareFacts.comThe Author
Nothing has changed, but it isn’t a smokescreen, it is real.
It just gives an order to start not enforcing taxes to the extent allowed by law… which is a very ambiguous thing as it stands now.
For me, that isn’t enough teeth to bank on not paying the fee for 2017. One could take the risk, and they may find an exemption on the 8965 form come April, but banking on it seems like a risky bet.
Here is another article explaining the order in more detail.
https://obamacarefacts.com/2017/01/24/trump-signs-executive-order-on-aca/