HCW Benefits Blog

Contributor:
Laura Bibb, JD, Compliance Officer
Hill, Chesson & Woody

What happened?
This week, the House voted 245 to 189 to repeal reform law. The November elections gave Republicans control over the House and the necessary votes to repeal the law. The Senate, however, is still controlled by Democrats and a successful repeal vote is unlikely. Were the Senate to follow the House’s lead and repeal the legislation, it is almost certain that President Obama would exercise his presidential veto powers. The House likely does not have the necessary votes (2/3 majority) to overturn a Presidential veto.

What does it mean?
Honestly, not much. Reform law is still “good law.” Without a repeal by the Senate, the law remains in effect and we have to move forward with compliance efforts. Even if the Senate were to repeal the law, the President will veto the repeal. Many commentators have said that the repeal vote is really more “posturing” by Republicans who promised in the November election campaigns to repeal the law.

What’s next?
The House plans to vote to have 4 committees (Ways and Means, Energy and Commerce, Education and Workforce, and Judiciary) work on a bill to replace parts of healthcare reform law. Any bill coming out of the House would have to be approved by the Senate. With the success of an outright repeal unlikely, Republican leaders have indicated that their long-term strategy for affecting provisions of healthcare reform law is by cutting funding to the law. Without necessary funding, some provisions of the law may become unenforceable.

Also, don’t forget there are cases pending in the federal courts challenging the constitutionality of the individual mandate.

What now?
Many employers may be wondering how to proceed, given the House’s repeal vote and the federal court cases.  At this time, healthcare reform law is still in effect and employers should continue to take the necessary steps to comply. HCW is continuing to (1) educate clients about the rules and regulations as they emerge and provide clarification for employers to comply with reform law, and (2) assist clients in planning and preparing from a strategic and compliance perspective for reform in the long-term. In addition, HCW will monitor Congress’ actions around reform law and the pending federal court cases.

Still have questions?
Finding yourself searching for more info? We've got you covered. Our Healthcare Reform: The Employers' Guide kit has a wealth of information for employers on what has taken place so far with healthcare reform and what it means for business owners. Also, last fall during our Lunch & Learn events, Harry Reynolds spoke on the Washington perspective of reform. His presentations, and others, are downloadable on our Lunch & Learn event page.

Let's hear your thoughts. We'd like to know your take on all this. Feel free to comment below.

1. What would a repeal of the Healthcare Law mean to your company?
2. Is your company preparing for Reform to be enacted? If so, how?
3. What are your thoughts regarding Reform as a whole?