What You Need to Know About ACHA and Employer Coverage

Scroll down to read more!

What You Need to Know About ACHA and Employer Coverage

Scroll down to read more!

Table of Contents

On May the Republication healthcare bill passed its first hurdle in Congress and the ACHA is now on its way to the Senate. While the party was unable to fully repeal and replace, as so many of them including the president promised on the campaign trail, it makes substantial changes to the ACA. In addition to its introducing a long list of pre-existing conditions that allow insurance companies to charge hefty premiums, it also takes the first steps toward transforming employer coverage, by making it easier for employers to get regulatory waivers. Employers could get waivers to deny coverage and can effectively shop around for the most favourable set of rules. The bill has yet to pass through the senate, where it could undergo substantial revision, or be signed by the president, so the ACHA is not yet the law of the land – but we should all be prepared for the changes it might make to employee benefits.

What You Need to Know About ACHA and Employer Coverage

Workers Might See Employer Health Coverage Disappear Under New GOP AHCA

Benefits Pro says that as many as half of Americans currently insured by employers could lose coverage under the ACHA. That’s thanks to a clause which allows them to pick which state’s requirements to follow in terms of coverage, and the reintroduction of lifetime caps.

But if the employee coverage landscape is about to completely change, what should you do?

Employers Should Stay the Course for Now

Lexicology argues that the best thing that employers can do right now is stay calm and wait. Since we don’t know if the bill will make it past the senate and in what form, there’s little point in taking action just yet. Simply stay as informed as possible and keep your employees in the loop.

Here’s What You Need to Know About Preexisting Conditions in the GOP Health Plan

If you do any work at all in terms of advising employees on health benefits, expect to be talking to them a lot about preexisting conditions that may make their health care, or that of their (or your) loved ones, much more expensive. WSJ breaks down why preexisting conditions matter so much to insurers and the affects the ACHA’s lengthy list of preexisting conditions might have, some of them unintended.

How the GOP’s Health-Care Bill Would Affect People Insured Through Work

This is an old piece pertaining to the previous version of the bill but many of its insights are still valuable – particularly since we have no CBO score on the current bill, as it was pushed through before one could be obtained. The new bill would have somewhat different effects, however the increase in premiums combined with the potential for lowest common denominator coverage could spur a similar decline in employer sponsored coverage.

GOP Health Bill Jeopardizes Out-of-Pocket Caps in Employer Plans

Finally, let’s talk about waivers. Certain states issue waivers to large employers for 10 coverage areas. Thanks to the provision in the bill which will allow employers to shop around for the state regulations they want to follow, they can also pick a state which will give them waivers. According to WSJ,

The provision, part of a last-minute amendment, lets states obtain waivers from certain Affordable Care Act insurance regulations. Insurers in states that obtain the waivers could be freed from a regulation mandating that they cover 10 particular types of health services, among them maternity care, prescription drugs, mental health treatment and hospitalization.

So while the bill isn’t actually aimed at reducing coverage in large employers it might just do so. That’s because “the proposed waivers do apply to individual or small group markets, [but] large employers could be impacted because currently regulatory language lets them pick benefit plans in any state.”

Did you like this post? Share it!

A Word From Our Sponsors

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

Recommended Posts

12 Types of Paid and Unpaid Leave and Time Off

A list for the HR professional to be able to answer employee questions related to time off....
google, google x-ray, sourcing, candidates, talent acquistion

Using Google X-Ray Search to Find Candidate

Learn how to use Google X-Ray to define and narrow your search for an ideal candidate in any industry - with examples!...
The Debate on Social Media Policies and Disclaimers The Debate on Social Media Policies and Disclaimers The Debate on Social Media Policies and Disclaimers The Debate On Social Media Policies and Disclaimers

5 Employee Twitter Bio Disclaimers You Should Add Today

Learn the top five Twitter (X) bio disclaimers every HR professional needs to protect personal and professional interests on social media....

How to Calculate FLSA Overtime Pay

Understand the Fair Labor Standards Act and learn how to calculate FLSA overtime pay to avoid any mistakes....
Free SHRM Recertification Credits

Maximize Your HR Potential with SHRM Recertification Credits

Discover how to earn free SHRM recertification credits with our guide to maintaining your credentials effortlessly....

HR Certification Podcast Episode 15: Reviewing Employment Law for HRCI & SHRM Exams

In this episode of the HR Certification Podcast, we review employment law topics including adverse impact and the four-fifths rule....

5 Effective Employee Training Methods for 2024

Is adapting quickly to market changes a priority for your company’s future? If so, it’s crucial to equip your workforce with the necessary knowledge...

Navigating Career Change: Transitioning from HR to a New Career Path

Thinking about leaving HR for a new career? It happens to the best of us. Here's what you should consider first....

Checkout Our Products

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

More From Workology

Free SHRM Recertification Credits

Maximize Your HR Potential with SHRM Recertification Credits

Discover how to earn free SHRM recertification credits with our guide to maintaining your credentials effortlessly.

HR Certification Podcast Episode 16: Answering More of Your HR Exam Questions

In this episode of the HR Certification Podcast, we are answering your HR Certification questions about SHRM and HRCI exams.
google, google x-ray, sourcing, candidates, talent acquistion

Using Google X-Ray Search to Find Candidate

Learn how to use Google X-Ray to define and narrow your search for an ideal candidate in any industry - with examples!
Your Guide to Easy SHRM-CP Recertification

Your Guide to Easy SHRM-CP Recertification: Stay Certified

Master SHRM-CP recertification with ease! Uncover the steps, credits, and strategies to maintain your HR credential and excel in your career.