Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal
Signed: January 20, 2017
Published: January 24, 2017
Document Number: 2017-01799
📋Summary
This executive order directs federal agencies to use whatever legal flexibility they have to reduce the costs, taxes, penalties, and regulatory requirements associated with the Affordable Care Act while the Administration seeks its repeal. It affects federal agencies that administer the law, as well as states, individuals and families, health care providers, insurers, and companies involved in medical products and drugs. It tells agencies to consider waiving, delaying, deferring, or granting exemptions from ACA requirements that create financial or regulatory burdens, and to work with states to give them more control in running health programs. It also instructs agencies to encourage more competition and consumer choice in health care and health insurance across state lines, while following required rulemaking procedures and staying within existing legal and budget limits.
💼Business Impact
This order most affects health insurers, employers offering group health plans (especially mid-to-large employers), healthcare providers, and life sciences/medical device and pharma firms because it directs agencies to use discretion to waive, defer, or delay ACA-related taxes, penalties, and regulatory requirements where legally possible. In the near term it can create compliance uncertainty and potential relief opportunities (e.g., delayed enforcement, expanded exemptions, more state flexibility via waivers), but it does not repeal the ACA—so existing statutory obligations generally remain until agencies formally change guidance/rules. Businesses should immediately (1) monitor HHS/IRS/DOL enforcement bulletins and state waiver activity that could change reporting, mandate, or plan-design expectations, (2) review 2017–2018 benefits strategy and budgeting for potential shifts in penalties/fees and market stability, and (3) document compliance decisions and keep plans “audit-ready” in case enforcement priorities change again.
Full Text
Executive Order 13765 of January 20, 2017
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 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. ( printed page 8352)
(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.
THE WHITE HOUSE,
January 20, 2017.