Tuesday, January 24, 2017

Text and Explanation of President Trump's Executive Order on the Affordable Care Act

Here is the text of the Executive Order on the Affordable Care Act issued by President Donald Trump on January 20, 2017. My comments will be in red.

THE WHITE HOUSE
Office of the Press Secretary
    For Immediate Release January 20, 2017
      EXECUTIVE ORDER
      - - - - - - -
      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.
      What This Means - Do no more harm. The ACA still exists but do nothing to expand it as we find a fair and affordable alternative.
      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.
      What This Means - The individual mandate is dead as a doornail. The rest of the ACA is now just window-dressing. Once the individual mandate is gone, the entire socialized medicine aspect is gone as well. This will be the section that goes down in history as where the ACA died.
      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.
      What This Means - Sec. 3 and 4 deal directly with reciprocity and creating products and plans that can cross over state lines while still being able to effectively adjudicate claims. If the President does this right, it is a game changer in our industry and people will be very happy with the plan offerings available to them.
      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
      2
      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.
      What This Means - Sec. 5 and 6 basically say "yes, we understand there is a separation of powers and yes, we understand there is a process for amending or deleting regulations but understand you as an agency head will not stall the process". These two sections are saying that they understand there is a process but they are also saying there is a new sheriff in town.
      DONALD J. TRUMP
      THE WHITE HOUSE,
      January 20, 2017.
      # # #
      In Summary, this is not the repeal that everyone was looking for. Thank God it wasn't because with nothing in place yet, it would create chaos. No, this is a very deliberate and measured Executive Order that says, things are changing, this is the path we are taking and politically motivated agency heads better not get in the way.
      The really interesting time is when the actual plan descriptions start getting released. Please Mr. President as you are designing plans, do not make your reciprocity plans all MSA's or HSA's. The average consumer doesn't understand them and when they were offered as a Medicare plan, we in the broker community received more complaints about them. They are a great alternative for the consumer savvy enough to understand how they work but they can also be a problem for the consumer who is used to walking into their PCP office, showing their card and handing over $20. Keep moving forward with reciprocity but keep managed care as an alternative. Even if they are similar to PPO and POS, allowing the member to go out of state on the out of network side. You have a great opportunity here, Mr. President. Don't be like the last occupant of the White House, let us help you.

      No comments:

      Post a Comment