Legislative Actions in the 112th, 113th, and 114th Congresses to Repeal, Defund, or Delay the Affordable Care Act

Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act C. Stephen Redhead Specialist in Health Policy Janet Kinzer Information Research Specialist October 30November 22, 2013 Congressional Research Service 7-5700 www.crs.gov R43289 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Contents Introduction...................................................................................................................................... 1 Background on the Affordable Care Act .......................................................................................... 2 How ACA Implementation Affects Federal Spending ..................................................................... 3 Tables Table A-1. Enacted Authorizing Legislation That Amends the ACA .............................................. 7 Table B-1. ACA Provisions in Bills Approved by the House in the 112th and 113th Congresses .................................................................................................................................. 10 Table C-1. ACA-Related Provisions in Appropriations Acts, FY2011-FY2014............................ 1314 Table D-1. Administrative Delays in ACA Implementation .......................................................... 1819 Appendixes Appendix A. ACA Provisions in Enacted Authorizing Legislation in the 111th and 112th Congresses............................................................................................................................ 6 Appendix B. ACA Provisions in Bills Approved by the House in the 112th and 113th Congresses .................................................................................................................................... 9 Appendix C. ACA Provisions in Appropriations Acts (FY2011-FY2014) .................................... 1213 Appendix D. Administrative Actions to Delay ACA Implementation Implementation of Specific ACA Provisions ..................................................................................................................... 17.............. 18 Contacts Author Contact Information........................................................................................................... 2021 Congressional Research Service Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Introduction Congress is deeply divided over implementation of the Patient Protection and Affordable Care Act (ACA), the health reform law enacted in March 2010.1 Since the ACA’s enactment, lawmakers opposed to specific provisions in the ACA, or to the entire law, have debated implementation of the law on numerous occasions and considered multiple bills to repeal, defund, delay, or otherwise amend the law. Most of the legislative activity on these ACA-related bills has taken place in the House. The legislation has included stand-alone bills as well as provisions in broader, often unrelated measures that would (1) repeal the ACA in its entirety and, in some cases, replace it with new law; (2) repeal, or by amendment restrict or otherwise limit, specific provisions in the ACA; (3) eliminate appropriations provided by the ACA and rescind all unobligated funds;2 (4) replace the mandatory appropriations for one or more ACA programs with authorizations of (discretionary) appropriations, and rescind all unobligated funds; and (5) block or otherwise delay implementation of specific ACA provisions. A few bills containing provisions to amend the ACA that have attracted sufficiently broad and bipartisan support have been approved in both the House and the Senate and signed into law. Some lawmakers also have used the annual appropriations process in an effort to eliminate funding for the ACA or delay its implementation. Several ACA-related provisions were included in enacted appropriations acts for FY2011-FY2013. Congress has yet to complete legislative action on any of the 12 annual appropriations bills to fund the routine operations of the federal government for FY2014, which began on October 1, 2013. Moreover, lawmakers initially were unable to agree on a continuing appropriations bill, or a continuing resolution (CR), to provide funding for the new fiscal year. The House repeatedly attached provisions to the CR to defund or delay ACA implementation, which the Senate rejected. The resulting lapse in funding at the beginning of FY2014 led to a partial shutdown of the federal government. Lawmakers finally reached agreement on legislative language on October 16, and the President signed the Continuing Appropriations Act, 2014 (P.L. 113-46), the following day to reopen the government.3 P.L. 113-46, which funds the federal government through January 15, 2014, does not include any provisions to defund or delay ACA implementation. Instead, it requires the Secretary of Health and Human Services (HHS) to certify to Congress that the ACA health insurance exchanges are 1 The ACA was signed into law on March 23, 2010 (P.L. 111-148, 124 Stat. 119). A week later, on March 30, 2010, the President signed the Health Care and Education Reconciliation Act (HCERA; P.L. 111-152, 124 Stat. 1029), which amended multiple health care and revenue provisions in the ACA. All references to the ACA in this report refer to the law as amended by HCERA. 2 Appropriations bills provide agencies with budget authority, which is the legal authority to incur financial obligations (e.g., hire employees, purchase services, award grants, or sign contracts) that result in immediate or future government expenditures (or outlays). Budget authority is generally made available for obligation during a specified time period, typically the upcoming fiscal year. Once budget authority reaches the end of that time period, it “expires,” meaning that it is no longer available for obligation. A rescission is a provision of law that cancels budget authority prior to when it would otherwise expire, making it unavailable for future obligation. For further explanations of these terms, see GAO, A Glossary of Terms Used in the Federal Budget Process, GAO-05-734SP, September 2005, pp. 85-86, available at http://www.gao.gov. 3 P.L. 113-46, 127 Stat. 558. For more analysis of the various legal and procedural considerations arising from the use of the appropriations process to delay or defund the ACA, see CRS Report R43246, Affordable Care Act (ACA) and the Appropriations Process: FAQs Regarding Potential Legislative Changes and Effects of a Government Shutdown, coordinated by C. Stephen Redhead. Congressional Research Service 1 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act verifying the eligibility of individuals applying for subsidies to help cover the cost of purchasing insurance coverage. This report summarizes legislative and other actions taken to repeal, defund, or delay the ACA since the law’s enactment. The information is presented in four appendixes. Table A-1 in Appendix A summarizes the authorizing legislation to amend the ACA that has been approved by both chambers and enacted into law. Table B-1 in Appendix B summarizes the ACA provisions in authorizing legislation that passed the House in the 112th Congress (2011-2012) but was not approved by the Senate. It also lists the ACA-related legislation that the House has passed to date in the 113th Congress (2013-2014), but which has not been taken up by the Senate. Table C-1 in Appendix C summarizes the ACA-related provisions in enacted annual appropriations acts for FY2011-FY2013, and in the FY2014 continuing appropriations act. Also included is a brief overview of all the ACA-related provisions added to appropriations bills considered, and in most cases reported, by the House and Senate Appropriations Committees since FY2011. Finally, Table D-1 in Appendix D summarizes the administrative decisions taken by HHS and the Department of the Treasury to delay implementation of specific ACA requirements by one year. To help provide context for the information presented in the appendixes, the report continues with some background on the core provisions of the ACA. That is followed by an overview of the law’s impact on federal spending. This report will beis updated periodically to reflect legislative and and other developments. Background on the Affordable Care Act4 Among its many provisions, the ACA reforms the private health insurance market and sets minimum standards for health coverage. The law creates competitive private health insurance marketplaces—or exchanges—in each state through which individuals and small employers will be able to shop for, select, and enroll in qualified health plans. The exchanges began open enrollment on October 1, 2013. Insurance coverage bought through the exchanges will begin on January 1, 2014. Plans offered through the exchanges, and certain other plans, must meet essential health benefit standards requiring them to cover emergency services, hospital care, physician services, preventive care, prescription drugs, and mental health and substance use disorder treatment, among other specified services. Refundable tax credits will be available to certain individuals and families with incomes between 100% and 400% of the federal poverty level (FPL) to help offset the cost of purchasing insurance coverage through the exchanges. In addition, certain individuals and families receiving the premium credit will be eligible for a subsidy to lower their cost-sharing (i.e., out-of-pocket costs such as deductibles and co-pays). The ACA also establishes new federal requirements for private health insurance, some of which have already taken effect. For example, health plans may not deny coverage to children up to age 4 The information provided in this section is drawn from CRS Report R41664, ACA: A Brief Overview of the Law, Implementation, and Legal Challenges, coordinated by C. Stephen Redhead. While a detailed examination of the ACA is beyond the scope of this report, numerous CRS products that provide more in-depth information on the many new programs and activities authorized and funded by the law are available at http://www.crs.gov/pages/subissue.aspx? cliid=3746&parentid=13&preview=False. Congressional Research Service 2 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act 19 based on a preexisting condition, young adults up to age 26 generally must be allowed to remain on their parents’ health plans, and plans must cover preventive services and immunizations recommended by various specified entities without any cost-sharing. The remaining health insurance requirements take effect in 2014, when health plans will be required to sell and renew policies to all individuals, and may not deny coverage for preexisting conditions at any age or otherwise discriminate based on health status. Premiums may vary by limited amounts, but only based on age, family size, geographic area, and tobacco use.5 Also beginning in 2014, most U.S. citizens and legal residents will be required to have health insurance. Those who remain uninsured may have to pay a penalty. As plans will no longer be able to restrict coverage of individuals with health problems, the ACA’s individual insurance mandate is intended to ensure that healthy individuals participate in the insurance market rather than waiting until they need health care services. Increasing the number of healthy persons in the risk pool helps spread the risk and reduce premiums. In addition to expanding access to private health insurance coverage, the ACA, as enacted, requires state Medicaid programs to expand coverage to all eligible nonelderly, non-pregnant individuals under age 65 with incomes up to 133% of the FPL. The federal government will initially cover 100% of the expansion costs, phasing down to 90% of the costs by 2020. Moreover, Medicaid law authorizes the HHS Secretary to withhold existing federal Medicaid matching funds if states refuse to comply with the expansion. However, in National Federation of Independent Business v. Sebelius, the U.S. Supreme Court found that the Medicaid expansion unconstitutionally coerced the states by threatening them with the loss of their existing federal Medicaid matching funds.6 The Court precluded the HHS Secretary from penalizing states that choose not to participate in the Medicaid expansion, a decision that effectively makes Medicaid expansion an option for states.7 How ACA Implementation Affects Federal Spending Implementation of the ACA is projected to have a significant impact on both mandatory and discretionary spending. Mandatory spending—also referred to as direct spending—is controlled through authorizing laws.8 It includes spending on entitlement programs such as Medicare and Social Security. Such spending may be funded through provisions in the authorizing law that provide temporary or permanent appropriations for that purpose. Alternatively, when the authorizing law contains no appropriations, such mandatory programs are funded through the annual appropriations process. This is sometimes referred to as “appropriated mandatory” or 5 For more information, see CRS Report R42069, Private Health Insurance Market Reforms in the Patient Protection and Affordable Care Act (ACA), by Annie L. Mach and Bernadette Fernandez. 6 NFIB v. Sebelius, No. 11-393, slip op. (June 28, 2012), http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf. 7 For more information, see CRS Report R42367, Medicaid and Federal Grant Conditions After NFIB v. Sebelius: Constitutional Issues and Analysis, by Kenneth R. Thomas. 8 An authorization may generally be described as a statutory provision that defines the authority of the government to act. It can establish or continue a federal agency, program, policy, project, or activity. Further, it may establish policies and restrictions and deal with organizational and administrative matters. It may also explicitly authorize subsequent congressional action to provide appropriations. For further information, see CRS Report R42098, Authorization of Appropriations: Procedural and Legal Issues, by Jessica Tollestrup and Brian T. Yeh. Congressional Research Service 3 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act “appropriated entitlement” spending.9 Discretionary spending is both controlled and funded through the annual appropriations process. It typically covers the routine costs of running federal agencies and offices, including wages and salaries.10 Federal spending on ACA implementation can be grouped into three categories: (1) mandatory spending to expand insurance coverage through the exchanges and Medicaid, (2) other mandatory spending provided in the ACA, and (3) discretionary spending on administering and enforcing the ACA. Mandatory Spending on Expanding Insurance Coverage The first category, which accounts for most of the federal spending under the ACA, includes the exchange subsidies (i.e., premium tax credits and cost-sharing subsidies), the federal government’s share of the costs of Medicaid expansion, and tax credits for small employers. The Congressional Budget Office’s (CBO’s) estimate of the budgetary impact of the ACA projected that those costs would be offset by revenues from new taxes and fees established in the law, and by savings from the law’s changes to Medicare payments that are designed to slow the growth in future spending on this program.11 Mandatory Spending for Other Programs The ACA included numerous appropriations that provide billions of dollars of mandatory funding to support grant programs and other activities authorized by the law.12 For example, the ACA provided funding for several temporary insurance programs for targeted groups, including a temporary high-risk pool for uninsured individuals with preexisting conditions, and a reinsurance program to reimburse employers for a portion of the health insurance claims’ costs for their 55- to 64-year-old retirees. It provided funding for grants to states to plan and establish health insurance exchanges. The ACA also provided a permanent appropriation, available for 10-year periods, for the Center for Medicare & Medicaid Innovation (CMI), within the Centers for Medicare & Medicaid Services (CMS), to test and implement innovative health care payment and service delivery models. In addition, the ACA created four special funds and appropriated amounts to each one. First, the Community Health Center Fund (CHCF) is providing $11 billion over five years to help support community health center operations and the National Health Service Corps. Second, the PatientCentered Outcomes Research Trust Fund (PCORTF) is supporting comparative effectiveness research through FY2019 with a mix of appropriations, fees on health plans, and transfers from the Medicare trust funds. Third, the Prevention and Public Health Fund (PPHF), for which the 9 For further information on direct spending, see CRS Report RS20129, Entitlements and Appropriated Entitlements in the Federal Budget Process, by Bill Heniff Jr. 10 For further information on discretionary spending, see CRS Report R42388, The Congressional Appropriations Process: An Introduction, by Jessica Tollestrup. 11 For more analysis of the ACA’s projected impact on federal direct spending and revenues, including details of CBO’s budgetary estimates, see CRS Report R42051, Budget Control Act: Potential Impact of Sequestration on Health Reform Spending, by C. Stephen Redhead. 12 For a summary of all the ACA’s mandatory appropriations, and the status of obligation of those funds, see CRS Report R41301, Appropriations and Fund Transfers in the Patient Protection and Affordable Care Act (ACA), by C. Stephen Redhead. Congressional Research Service 4 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act ACA provided a permanent annual appropriation, is intended to support prevention, wellness, and other public health-related programs and activities. Finally, the Health Insurance Reform Implementation Fund (HIRIF), for which the ACA appropriated $1 billion, is helping cover the administrative costs of implementing the law. Discretionary Spending Besides its impact on mandatory spending, implementation of the ACA is likely to affect discretionary spending, which is controlled through the annual appropriations process. First, the ACA created numerous new discretionary grant programs and provided most of them with an authorization of appropriations. To date, however, few of these programs have received discretionary funding, though several of them have been supported with mandatory funds from the PPHF.13 Second, the two agencies largely responsible for the law’s implementation—CMS and the Internal Revenue Service (IRS)—are projected to incur substantial costs in connection with administering and enforcing the law. To date, the agencies have used a mix of discretionary funds from agency accounts (e.g., CMS Program Management), including transfers from other HHS agency accounts, as well as ACA mandatory funds (e.g., HIRIF, PPHF) to support implementation activities. CMS and the IRS have both requested additional discretionary funding for ACA-related activities in their annual budget submissions. For FY2013, CMS requested an additional $1 billion for ACA implementation, and the IRS requested an additional $360 million to administer and enforce the ACA’s tax-related provisions. The Full-Year Continuing Appropriations Act, 2013 (P.L. 113-6, Division F) did not provide any of these requested funds for ACA implementation.14 The Administration’s FY2014 budget request included $1.4 billion in new funds for CMS for ongoing ACA implementation, plus an additional $440 million for the IRS for its ACA-related activities. The temporary FY2014 continuing appropriations act (P.L. 113-46), under which the federal government is currently operating, does not provide any new funding for ACA implementation. 13 The ACA also reauthorized funding for many existing discretionary grant programs authorized under the PHSA; notably, the federal health workforce programs administered by the Health Resources and Services Administration (HRSA). The authorization of appropriations for many of these programs expired prior to the ACA’s enactment, though they continued to receive an annual appropriation. The ACA also permanently reauthorized appropriations for the federal health centers program and for programs and services provided by the Indian Health Service (IHS). Congressional appropriators have in general continued to provide discretionary funding for these longstandinglong-standing programs, though typically at funding levels below the amounts authorized by the ACA. For more details on all the authorizations (and reauthorizations) of discretionary funding in ACA, including the FY2011-FY2013 funding levels for programs that received an appropriation, see CRS Report R41390, Discretionary Spending in the Patient Protection and Affordable Care Act (ACA), coordinated by C. Stephen Redhead. 14 For more discussion on federal spending to administer and enforce ACA, see CRS Report R42051, Budget Control Act: Potential Impact of Sequestration on Health Reform Spending, by C. Stephen Redhead, pp. 19-21. Congressional Research Service 5 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Appendix A. ACA Provisions in Enacted Authorizing Legislation in the 111th and 112th Congresses Table A-1 summarizes the authorizing legislation enacted to date to amend the ACA. Each table entry includes the public law number and date of enactment, the original bill number and sponsor, and a brief description and explanation of the change(s) made to the ACA. The laws are listed in reverse chronological order beginning with the most recently enacted legislation and extending back to the first measure signed into law following the enactment of the ACA and the accompanying package of amendments in the Health Care and Education Reconciliation Act.15 In compiling the table, CRS made decisions about which laws—or specific provisions in a particular law—to include, and which ones to leave out. Generally, CRS has included only those laws that amend, or make changes that relate to, new programs and activities that were established under the ACA. CRS has excluded laws that amend or extend established programs and activities that were subject to prior amendment by the ACApredate the ACA and were amended or extended by it. For example, the ACA extended multiple existing Medicare and Medicaid program payments and activities that have since been further extended and/or modified by more recently enacted laws. None of these laws are included in Table A-1. The following laws are referred to in the tablesTable A-1 by their acronym: 15 • Health Care and Education Reconciliation Act (HCERA; P.L. 111-152) • Internal Revenue Code (IRC) • Medicare Improvements for Patients and Providers Act (MIPPA; P.L. 110-275) • Social Security Act (SSA) See footnote 1. Congressional Research Service 6 Table A-1. Enacted Authorizing Legislation That Amends the ACA Public Law and Date of Enactment Bill (Sponsor) Summary of ACA Provisions 111th112th Congress P.L. 111-159 Apr. 26, 2010 H.R. 4887 (Skelton) TRICARE Affirmation Act. Amended IRC Section 5000A(f)(1)(A), as added by ACA Section 5101(b), to clarify that health care provided under TRICARE, TRICARE for Life, and the Nonappropriated Fund Health Benefits program constitutes minimal essential health care coverage as required by the ACA. [Beginning in 2014, the ACA requires most U.S. citizens and legal residents to have minimal essential health care coverage or pay a penalty.] P.L. 111-173 May 27, 2010 H.R. 5014 (Filner) [No title.] Amended IRC Section 5000A(f)(1)(A), as added by ACA Section 5101(b), to clarify that health care provided by the Department of Veterans Affairs constitutes minimal essential health care coverage as required by the ACA. [Beginning in 2014, the ACA requires most U.S. citizens and legal residents to have minimal essential health care coverage or pay a penalty.] P.L. 111-226 Aug. 10, 2010 H.R. 1586 (Rangel) FAA Air Transportation Modernization and Safety Improvement Act. Among its many provisions, P.L. 111-226 amended SSA Section 1927(k)(1)(B)(i)(IV) (as added by ACA Section 2503(a)(2)(B), as amended by HCERA Section 1101(c)) by modifying the definition of average manufacturer price (AMP) to include inhalation, infusion, implanted, or injectable drugs that are not generally dispensed through a retail community pharmacy. P.L. 111-309 Dec. 15, 2010 H.R. 4994 (Lewis) Medicare and Medicaid Extenders Act of 2010. To help offset the costs of the Medicare and Medicaid program extensions and the postponement of cuts in Medicare physician payments, P.L. 111-309 amended IRC Section 36B (as added by ACA Section 1401(a)) to modify the amount of excess premium tax credits that individuals would have to repay. The law created a sliding scale for such repayments based on household income. [Under the ACA, the amount received in premium credits is based on income as reported on tax returns. These amounts are reconciled the following year, which could result in an overpayment of credits if income increases. The ACA placed limits on the amount of any premium credit overpayment that had to be repaid to the government.] P.L. 111-312 Dec. 17, 2010 H.R. 4853 (Oberstar) Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Amended ACA Section 10909 to extend the nonrefundable adoption tax credit through tax year 2012. The adoption tax credit helps offset the cost of qualified adoption expenses. [Subsequently, P.L. 112-240 made the nonrefundable adoption tax credit permanent.] P.L. 111-383 Jan. 7, 2011 H.R. 6523 (Skelton) Ike Skelton National Defense Authorization Act for Fiscal Year 2011. Extended TRICARE coverage to dependent adult children up to age 26, to conform with the private health insurance requirements under the ACA. 112th Congress P.L. 112-9 Apr. 14, 2011 CRS-7 H.R. 4 (Lungren) 112-240 Jan. 2, 2013 H.R. 8 (Camp) American Taxpayer Relief Act of 2012. Among its many provisions, P.L. 112-240: • Amended MIPAA Section 119 to provide a total of $25 million for FY2013 for the four outreach and assistance programs, which ACA Section 3306 funded through FY2012. • Amended SSA Section 501(c)(1)(A) to provide $5 million for FY2013 for the family-to-family information centers, which ACA Section 5507(b) funded through FY2012. • Transferred 10% of the remaining unobligated Consumer Operated and Oriented Plan (CO-OP) program funds to a new CO-OP contingency fund (to provide assistance and oversight to CO-OP loan recipients) and rescinded the other 90% of those funds (see entries for P.L. 112-10 and P.L. 112-74, which predate this act, in Table C-1).a • Repealed ACA Title VIII, the Community Living Assistance Services and Supports (CLASS) Act. • Repealed the ACA’s appropriations for the National Clearinghouse for Long-Term Care Information and rescinded all unobligated funds. P.L. 112-141 July 6, 2012 H.R. 4348 (Mica) Moving Ahead for Progress in the 21st Century Act, or “MAP-21”. Among its many provisions, P.L. 112-141 further modified the Medicaid disaster-recovery FMAP adjustment (see entry for P.L. 112-96, above) by changing the adjustment factor and the effective date. P.L. 112-96 Feb. 22, 2012 H.R. 3630 (Camp) Middle Class Tax Relief and Job Creation Act of 2012. Among its many provisions, P.L. 112-96: P.L. 112-56 Nov. 21, 2011 CRS-7 H.R. 674 (Herger) • Amended ACA Section 4002 to reduce the Prevention and Public Health Fund (PPHF) annual appropriations over the period FY2013-FY2021 by a total of $6.25 billion to help offset the cost of extending the payroll tax cut and other programs in P.L. 112-96. • Amended SSA Section 1923(f) to extend by one year the disproportionate share hospital (DSH) allotment reduction imposed by ACA Section 3203. • Amended SSA Section 1905(aa), as added by ACA Section 2006, to make a technical correction to the formula to phase down the Medicaid disaster-recovery Federal Medical Assistance Percentage (FMAP) adjustment as originally intended. [The purpose of the adjustment was to help Louisiana avoid a significant reduction in its federal Medicaid match (i.e., FMAP) in the aftermath of Hurricane Katrina. As written in ACA Section 2006, the formula for the disaster-recovery FMAP adjustment unintentionally caused the FMAP adjustment to increase, rather than phase down, each year the state qualifies for the adjustment.] 3% Withholding Repeal and Job Creation Act. Among its many provisions, P.L. 112-56 amended IRC Section 36B, as added by ACA section 1401(a) (as amended), by modifying the calculation of Modified Adjusted Gross Income (MAGI) to include Social Security benefits. MAGI will be used to determine eligibility for exchange subsidies and Medicaid, beginning in 2014. Public Law and Date of Enactment P.L. 112-9 Apr. 14, 2011 Bill (Sponsor) H.R. 4 (Lungren) Summary of ACA Provisions Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011. Amended IRC Section 6041, as amended by ACA Section 9006, to repeal the requirement that businesses file an information report (IRS Form 1099) whenever they pay a vendor more than $600 for goods in a single year. To pay for the 1099 repeal, P.L. 112-9 further amended IRC Section 36B, as added by ACA Section 1401(a), by modifying the amount of excess premium tax credits that individuals would have to repay based on household income (see entry for P.L. 111-309, above). Public Law and Date of Enactment Bill (Sponsor) Summary of ACA Provisions P.L. 112-56 Nov. 21 111th Congress P.L. 111-383 Jan. 7, 2011 H.R. 674 (Herger) 3% Withholding Repeal and Job Creation Act. Among its many provisions, P.L. 112-56 amended IRC Section 36B, as added by ACA section 1401(a) (as amended), by modifying the calculation of Modified Adjusted Gross Income (MAGI) to include Social Security benefits. MAGI will be used to determine eligibility for exchange subsidies and Medicaid, beginning in 2014. P.L. 112-96 Feb. 22, 2012 H.R. 3630 (Camp) Middle Class Tax Relief and Job Creation Act of 2012. Among its many provisions, P.L. 112-96: • Amended ACA Section 4002 to reduce the Prevention and Public Health Fund (PPHF) annual appropriations over the period FY2013-FY2021 by a total of $6.25 billion to help offset the cost of extending the payroll tax cut and other programs in P.L. 112-96. • Amended SSA Section 1923(f) to extend by one year the disproportionate share hospital (DSH) allotment reduction imposed by ACA Section 3203. • Amended SSA Section 1905(aa), as added by ACA Section 2006, to make a technical correction to the formula to phase down the Medicaid disaster-recovery Federal Medical Assistance Percentage (FMAP) adjustment as originally intended. [The purpose of the adjustment was to help Louisiana avoid a significant reduction in its federal Medicaid match (i.e., FMAP) in the aftermath of Hurricane Katrina. As written in ACA Section 2006, the formula for the disaster-recovery FMAP adjustment unintentionally caused the FMAP adjustment to increase, rather than phase down, each year the state qualifies for the adjustment.] P.L. 112-141 July 6, 2012 H.R. 4348 (Mica) Moving Ahead for Progress in the 21st Century Act, or “MAP-21”. Among its many provisions, P.L. 112-141 further modified the Medicaid disaster-recovery FMAP adjustment (see entry for P.L. 112-96, above) by changing the adjustment factor and the effective date. P.L. 112-240 Jan. 2, 2013 H.R. 8 (Camp) American Taxpayer Relief Act of 2012. Among its many provisions, P.L. 112-240: • Amended MIPAA Section 119 to provide a total of $25 million for FY2013 for the four outreach and assistance programs, which ACA Section 3306 funded through FY2012. • Amended SSA Section 501(c)(1)(A) to provide $5 million for FY2013 for the family-to-family information centers, which ACA Section 5507(b) funded through FY2012. • Transferred 10% of the remaining unobligated Consumer Operated and Oriented Plan (CO-OP) program funds to a new CO-OP contingency fund (to provide assistance and oversight to CO-OP loan recipients) and rescinded the other 90% of those funds (see entries for P.L. 112-10 and P.L. 112-74, which predate this act, in Table C-1).a • Repealed ACA Title VIII, the Community Living Assistance Services and Supports (CLASS) Act. • Repealed the ACA’s appropriations for the National Clearinghouse for Long-Term Care Information and rescinded all unobligated funds.6523 (Skelton) Ike Skelton National Defense Authorization Act for Fiscal Year 2011. Extended TRICARE coverage to dependent adult children up to age 26, to conform with the private health insurance requirements under the ACA. P.L. 111-312 Dec. 17, 2010 H.R. 4853 (Oberstar) Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Amended ACA Section 10909 to extend the nonrefundable adoption tax credit through tax year 2012. The adoption tax credit helps offset the cost of qualified adoption expenses. [Subsequently, P.L. 112-240 made the nonrefundable adoption tax credit permanent.] P.L. 111-309 Dec. 15, 2010 H.R. 4994 (Lewis) Medicare and Medicaid Extenders Act of 2010. To help offset the costs of the Medicare and Medicaid program extensions and the postponement of cuts in Medicare physician payments, P.L. 111-309 amended IRC Section 36B (as added by ACA Section 1401(a)) to modify the amount of excess premium tax credits that individuals would have to repay. The law created a sliding scale for such repayments based on household income. [Under the ACA, the amount received in premium credits is based on income as reported on tax returns. These amounts are reconciled the following year, which could result in an overpayment of credits if income increases. The ACA placed limits on the amount of any premium credit overpayment that had to be repaid to the government.] P.L. 111-226 Aug. 10, 2010 H.R. 1586 (Rangel) FAA Air Transportation Modernization and Safety Improvement Act. Among its many provisions, P.L. 111-226 amended SSA Section 1927(k)(1)(B)(i)(IV) (as added by ACA Section 2503(a)(2)(B), as amended by HCERA Section 1101(c)) by modifying the definition of average manufacturer price (AMP) to include inhalation, infusion, implanted, or injectable drugs that are not generally dispensed through a retail community pharmacy. P.L. 111-173 May 27, 2010 H.R. 5014 (Filner) [No title.] Amended IRC Section 5000A(f)(1)(A), as added by ACA Section 5101(b), to clarify that health care provided by the Department of Veterans Affairs constitutes minimal essential health care coverage as required by the ACA. [Beginning in 2014, the ACA requires most U.S. citizens and legal residents to have minimal essential health care coverage or pay a penalty.] P.L. 111-159 Apr. 26, 2010 H.R. 4887 (Skelton) TRICARE Affirmation Act. Amended IRC Section 5000A(f)(1)(A), as added by ACA Section 5101(b), to clarify that health care provided under TRICARE, TRICARE for Life, and the Nonappropriated Fund Health Benefits program constitutes minimal essential health care coverage as required by the ACA. [Beginning in 2014, the ACA requires most U.S. citizens and legal residents to have minimal essential health care coverage or pay a penalty.] Source: Prepared by the Congressional Research Service based on the text of the public laws listed in the table. a. CRS-8 P.L. 112-10 and P.L. 112-74 rescinded a total of $2.6 billion of the ACA’s original $6 billion appropriation for the CO-OP program (see Table C-1). At the time P.L. 112-240 was enacted, according to HHS budget documents, the CO-OP program had an unobligated balance of $2.532 billion. P.L. 112-240 rescinded 90% of that amount (i.e., $2.279 billion), and remaining funds (i.e., $253 million) were transferred to the contingency fund. In all, Congress has rescinded $4.879 billion of the $6 billion CO-OP program appropriation. Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Appendix B. ACA Provisions in Bills Approved by the House in the 112th and 113th Congresses As noted earlier in this report, lawmakers opposed to specific provisions in the ACA, or to the entire law, have debated implementation of the law on numerous occasions and considered multiple bills to repeal, defund, or delay the law. Most of this legislative activity has taken place in the House. However, a few bills containing provisions to amend the ACA that have attracted sufficiently broad and bipartisan support have been approved in both the House and the Senate and signed into law. Those laws are summarized in Table A-1 in Appendix A. This appendixTable B-1 below summarizes the ACA provisions in authorizing legislation that passed the House in the 112th Congress, but was not approvedthe House has passed to date in the 113th Congress, but which has not been taken up by the Senate. It also lists the ACA-related legislation that the House has passed to date in the 113th Congress, but which has not been taken up by the Senate. This appendix that passed the House in the 112th Congress, but was not approved by the Senate. Table B-1 includes only legislation that, if enacted, would have a direct impact on the ACA and its implementation; measures that would not have such an effect are not included. Thus, budget resolutions, which are concurrent resolutions and not eligible to become public law, are not included.16 16 Both the House and the Senate have taken multiple votes on amendments to, and passage of, budget resolutions that expressed support for a full repeal of the ACA, or the repeal or amendment of specific provisions in the law. However, budget resolutions are concurrent resolutions that apply only to the Congress. They are not presented to the President for his signature and do not have the force of law. In the 112th Congress, for example, the House voted on several ACA-related amendments to, and passage of, the FY2012 and FY2013 budget resolutions (H.Con.Res. 34 and H.Con.Res. 112, respectively). Congressional Research Service 9 Table B-1. ACA Provisions in Bills Approved by the House in the 112th and 113th Congresses Bill (Sponsor) Bill Title, House Vote, Summary of ACA Provisions 112th113th Congress H.R. 2 (Cantor) Repealing the Job-Killing Health Care Law Act. Passed the House by a vote of 245-189 on January 19, 2011. It was offered as an amendment during Senate floor debate on an unrelated bill (S. 223) and rejected on a procedural motion by a vote of 47-51. H.R. 2 would have repealed the ACA in its entirety and restored the provisions of law amended or repealed by the ACA as if it had not been enacted. H.R. 5 (Gingrey) Protecting Access to Healthcare Act. Passed the House by a vote of 223-181 on March 22, 2012. Title II of H.R. 5 would have repealed the authority and appropriations for the Independent Payment Advisory Board (IPAB). H.R. 358 (Pitts) Protect Life Act. Passed the House by a vote of 251-172 on October 13, 2011. H.R. 358 would have prohibited using any funds authorized or appropriated by the ACA to pay for an abortion or to pay for any part of the costs of a health plan that covers abortions, except if the pregnancy is the result of rape or incest, or the life of the pregnant female is at risk unless an abortion is performed. It would have required insurers that offer plans through the exchanges that cover abortion services to offer identical plans that do not cover abortion services. It also would have prohibited federal, state or local government programs that receive ACA funding from discriminating against health care entities that refuse to provide abortion services or abortion training3350 (Upton) Keep Your Health Plan Act of 2013. Passed the House by a vote of 261-157 on November 15, 2013. H.R. 3350 would permit health insurance companies to continue selling policies in 2014 that were in existence in the individual market on January 1, 2013, even though such plans may not meet the ACA’s essential health benefit standards and other market reforms that take effect in 2014. [Note: This legislation was prompted by the decision of insurers to send cancellation notices to individuals and small businesses with health plans in the individual and small group markets. The Administration also has taken steps to address this issue. On November 14, 2013, it announced a transitional policy under which insurers may choose, subject to the approval of state insurance regulators, to renew noncompliant health plans that have been cancelled, or are slated for cancellation. Under the ACA, insurers are not permitted to sell noncompliant coverage to new enrollees. H.R. 3350, however, would allow insurers to sell such coverage in the individual market during 2014. See Appendix D.] H.R. 2009 (Price) Keep the IRS Off Your Health Care Act of 2013. Passed the House by a vote of 232-185 on August 2, 2013. H.R. 2009 would prohibit the Internal Revenue Service (IRS) from implementing or enforcing any provisions of the ACA. H.R. 2668 (Young) Fairness for American Families Act. Passed the House by a vote of 251-174 on July 17, 2013. H.R. 2668 would delay the ACA individual mandate by one year, and shift by one year the schedule of penalties for individuals who do not comply with the mandate. It also incorporated the provisions in H.R. 2667 (see above) to delay the employer mandate and related reporting requirements. H.R. 2667 (Griffin) Authority for Mandate Delay Act. Passed the House by a vote of 264-161 on July 17, 2013. H.R. 2667 would delay for one year certain ACA reporting requirements for insurers and employers as well as the penalties for employers who do not offer affordable coverage. [Note: H.R. 2667 would essentially codify the Administration’s announcement on July 2, 2013, that it was delaying the ACA employer mandate and related reporting requirements. See Table D-1.] H.R. 45 (Bachmann) A bill to repeal the Patient Protection and Affordable Care Act. Passed the House by a vote of 229-195 on May 16, 2013. H.R. 45 would repeal the ACA in its entirety and restore the provisions of law amended or repealed by the ACA as if it had not been enacted. 112th Congress H.R. 6079 (Cantor) Repeal of Obamacare Act. Passed the House by a vote of 244-185 on July 11, 2012. H.R. 6079 would have repealed the ACA in its entirety and restored the provisions of law amended or repealed by the ACA as if it had not been enacted. H.R. 436 (Paulsen) Health Care Cost Reduction Act of 2012. Passed the House by a vote of 270-146 on June 7, 2012. H.R. 436 would have (1) repealed ACA’s 2.3% excise tax on medical devices; (2) repealed the law’s restrictions on using tax-preferred accounts to pay for over-the-counter drugs; (3) allowed individuals to recoup up to $500 of unused funds remaining in their flexible spending account (FSA) after the end of the plan year; and (4) eliminated all limits on repayment of any premium credit overpayment, making individuals liable for the full amount. CRS-10 Bill (Sponsor) Bill Title, House Vote, Summary of ACA Provisions H.R. 5652 (Ryan) Sequester Replacement ReconciliationH.R. 1173 (Boustany) Fiscal Responsibility and Retirement Security Act of 2012. Passed the House by a vote of 267-159 on February 1, 2012. H.R. 1173 would have repealed Title VIII of the ACA, the Community Living Assistance Services and Supports (CLASS) Act. [Note: P.L. 112-240, enacted January 2, 2013, included a repeal of the CLASS Act; see Table A-1 in Appendix A.] H.R. 1213 (Upton) A bill to repeal ACA funding for health insurance exchanges. Passed the House by a vote of 238-183 on May 3, 2011. H.R. 1213 would have repealed the authority and appropriations for state exchange planning and establishment grants and rescinded all unobligated funds. H.R. 1214 (Burgess) A bill to repeal ACA funding for school-based health center (SBHC) construction. Passed the House by a vote of 235-191 on May 4, 2011. H.R. 1214 would have repealed the authority and appropriations for SBHC construction grants and rescinded all unobligated funds. H.R. 1216 (Guthrie) A bill to convert funding for graduate medical education (GME) in qualified teaching health centers (THCs) to an authorization of appropriations. Passed the House by a vote of 234-185 on May 25, 2011. H.R. 1216 would have replaced the appropriation for GME payments to THCs with an authorization of appropriations for each of FY2012 through FY2015, and rescinded all unobligated funds. It would have prohibited the GME funds from being used to provide abortions, except in cases of rape or incest or when the woman’s life is in danger. H.R. 1217 (Pitts) A bill to repeal the Prevention and Public Health Fund (PPHF). Passed the House by a vote of 236-183 on April 13, 2011. H.R. 1217 would have repealed the authority and appropriations for the PPHF and rescinded all unobligated funds. CRS-10 Bill (Sponsor) Bill Title, House Vote, Summary of ACA Provisions218-199 on May 10, 2012. H.R. 5652, which was introduced pursuant to the reconciliation instructions in the House FY2013 budget resolution (H.Con.Res. 112), would have replaced the FY2013 sequestration of discretionary spending (as required under the Budget Control Act of 2011) with a $19 billion reduction in the FY2013 discretionary cap, and would have implemented a series of mandatory program savings recommended by six House committees. Among its many provisions, H.R. 5652 would have (1) eliminated all limits on repayment of any premium credit overpayment, making individuals liable for the full amount; (2) repealed the authority and appropriations for the exchange planning and establishment grants and rescinded all unobligated funds; (3) repealed the authority and appropriations for the PPHF and rescinded all unobligated funds; (4) rescinded all remaining unobligated funds for the Consumer Operated and Oriented Plan (CO-OP) program; (5) extended by one year the disproportionate share hospital (DSH) allotment reduction imposed by the ACA; and (6) repealed the ACA’s Medicaid maintenance of effort requirements. H.R. 4628 (Biggert) Interest Rate Reduction Act. Passed the House by a vote of 215-195 on April 27, 2012. H.R. 4628 would have postponed by one year a scheduled increase in Stafford education loan rates and, to offset the costs of that adjustment, repealed the authority and appropriations for the PPHF and rescinded all unobligated funds. [Note: The one-year Stafford loan rate extension was incorporated as Division F, Title III of MAP-21, the surface transportation reauthorization bill (see entry for P.L. 112-141 in Table A-1 in Appendix A). The provision in H.R. 4628 to repeal the PPHF and rescind all unobligated funds was not included in MAP-21.] H.R. 5652 (Ryan) Sequester Replacement Reconciliation Act of 2012. Passed the House by a vote of 218-199 on May 10, 2012. H.R. 5652, which was introduced pursuant to the reconciliation instructions in the House FY2013 budget resolution (H.Con.Res. 112), would have replaced the FY2013 sequestration of discretionary spending (as required under the Budget Control Act of 2011) with a $19 billion reduction in the FY2013 discretionary cap, and would have implemented a series of mandatory program savings recommended by six House committees. Among its many provisions, H.R. 5652 would have (1) eliminated all limits on repayment of any premium credit overpayment, making individuals liable for the full amount; (2) repealed the authority and appropriations for the exchange planning and establishment grants and rescinded all unobligated funds; (3) repealed the authority and appropriations for the PPHF and rescinded all unobligated funds; (4) rescinded all remaining unobligated funds for the Consumer Operated and Oriented Plan (CO-OP) program; (5) extended by one year the disproportionate share hospital (DSH) allotment reduction imposed by the ACA; and (6) repealed the ACA’s Medicaid maintenance of effort requirements. H.R. 6079 (Cantor) Repeal of Obamacare Act. Passed the House by a vote of 244-185 on July 11, 2012. H.R. 6079 would have repealed the ACA in its entirety and restored the provisions of law amended or repealed by the ACA as if it had not been enacted. 113th Congress H.R. 45 (Bachmann) A bill to repeal the Patient Protection and Affordable Care Act. Passed the House by a vote of 229-195 on May 16, 2013. H.R. 45 would repeal the ACA in its entirety and restore the provisions of law amended or repealed by the ACA as if it had not been enacted. H.R. 2009 (Price) Keep the IRS Off Your Health Care Act of 2013. Passed the House by a vote of 232-185 on August 2, 2013. H.R. 2009 would prohibit the Internal Revenue Service (IRS) from implementing or enforcing any provisions of the ACA. H.R. 2667 (Griffin) Authority for Mandate Delay Act. Passed the House by a vote of 264-161 on July 17, 2013. H.R. 2667 would delay for one year certain ACA reporting requirements for insurers and employers as well as the penalties for employers who do not offer affordable coverage. [Note: This bill would essentially codify the Administration’s announcement on July 2, 2013, that it was delaying the ACA employer mandate and related reporting requirements. See Table D-1.] H.R. 2668 (Young) Fairness for American Families Act. Passed the House by a vote of 251-174 on July 17, 2013. H.R. 2668 would delay the ACA individual mandate by one year, and shift by one year the schedule of penalties for individuals who do not comply with the mandate. It also incorporated the provisions in H.R. 2667 (see above) to delay the employer mandate and related reporting requirements. Source: Prepared by the Congressional Research Service based on the text of the bills listed in the table. CRS-115 (Gingrey) Protecting Access to Healthcare Act. Passed the House by a vote of 223-181 on March 22, 2012. Title II of H.R. 5 would have repealed the authority and appropriations for the Independent Payment Advisory Board (IPAB). H.R. 1173 (Boustany) Fiscal Responsibility and Retirement Security Act of 2012. Passed the House by a vote of 267-159 on February 1, 2012. H.R. 1173 would have repealed Title VIII of the ACA, the Community Living Assistance Services and Supports (CLASS) Act. [Note: P.L. 112-240, enacted January 2, 2013, included a repeal of the CLASS Act; see Table A-1 in Appendix A.] H.R. 358 (Pitts) Protect Life Act. Passed the House by a vote of 251-172 on October 13, 2011. H.R. 358 would have prohibited using any funds authorized or appropriated by the ACA to pay for an abortion or to pay for any part of the costs of a health plan that covers abortions, except if the pregnancy is the result of rape or incest, or the life of the pregnant female is at risk unless an abortion is performed. It would have required insurers that offer plans through the exchanges that cover abortion services to offer identical plans that do not cover abortion services. It also would have prohibited federal, state, or local government programs that receive ACA funding from discriminating against health care entities that refuse to provide abortion services or abortion training. H.R. 1216 (Guthrie) A bill to convert funding for graduate medical education (GME) in qualified teaching health centers (THCs) to an authorization of appropriations. Passed the House by a vote of 234-185 on May 25, 2011. H.R. 1216 would have replaced the appropriation for GME payments to THCs with an authorization of appropriations for each of FY2012 through FY2015, and rescinded all unobligated funds. It would have prohibited the GME funds from being used to provide abortions, except in cases of rape or incest or when the woman’s life is in danger. H.R. 1214 (Burgess) A bill to repeal ACA funding for school-based health center (SBHC) construction. Passed the House by a vote of 235-191 on May 4, 2011. H.R. 1214 would have repealed the authority and appropriations for SBHC construction grants and rescinded all unobligated funds. H.R. 1213 (Upton) A bill to repeal ACA funding for health insurance exchanges. Passed the House by a vote of 238-183 on May 3, 2011. H.R. 1213 would have repealed the authority and appropriations for state exchange planning and establishment grants and rescinded all unobligated funds. H.R. 1217 (Pitts) A bill to repeal the Prevention and Public Health Fund (PPHF). Passed the House by a vote of 236-183 on April 13, 2011. H.R. 1217 would have repealed the authority and appropriations for the PPHF and rescinded all unobligated funds. CRS-11 Bill (Sponsor) H.R. 2 (Cantor) Bill Title, House Vote, Summary of ACA Provisions Repealing the Job-Killing Health Care Law Act. Passed the House by a vote of 245-189 on January 19, 2011. It was offered as an amendment during Senate floor debate on an unrelated bill (S. 223) and rejected on a procedural motion by a vote of 47-51. H.R. 2 would have repealed the ACA in its entirety and restored the provisions of law amended or repealed by the ACA as if it had not been enacted. Source: Prepared by the Congressional Research Service based on the text of the bills listed in the table. CRS-12 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Appendix C. ACA Provisions in Appropriations Acts (FY2011-FY2014) Numerous ACA-related provisions have been added to appropriations bills considered, and in some instances reported, by the House and Senate Appropriations Committees for FY2011FY2014. These provisions have been included in the Departments of Labor, Health and Human Services, Education, and Related Agencies (“Labor-HHS-ED”) Appropriations Act, which funds the Centers for Medicare & Medicaid Services (CMS), and the Financial Services and General Government (“Financial Services”) Appropriations Act, which funds the Internal Revenue Service (IRS). They include language prohibiting the use of discretionary funds provided in the bill to implement specific ACA provisions or the entire law, as well as broader legislative language to repeal, restrict, or rescind mandatory spending for, specific ACA provisions. While none of the discretionary funding prohibitions have survived, a few of the broader provisions affecting direct spending were incorporated into the final versions of the appropriations bills that were signed into law. Table C-1 summarizes the ACA-related provisions in enacted annual appropriations acts for FY2011-FY2013, and in the FY2014 continuing appropriations act. For each fiscal year, the table also gives a brief overview of the ACA-related provisions that were added to the Labor-HHS-ED and Financial Services appropriations act introduced and, in most cases, reported by the House and Senate Appropriations Committees. Congressional Research Service 1213 Table C-1. ACA-Related Provisions in Appropriations Acts, FY2011-FY2014 Public Law and Date of Enactment Summary of Provisions FY2011 P.L. 112-10 Apr. 15, 2011 Department of Defense and Full-Year FY2014 P.L. 113-46 Oct. 17, 2013 Continuing Appropriations Act, 2011. Division B, Title VIII of P.L. 112-10 provided full-year continuing appropriations for Labor-HHS-ED for FY2011 generally at FY2010 levels, but with numerous spending reductions for specified agencies and programs. It included the following ACA-related provisions: • Permanently canceled $2.2 billion of the $6 billion appropriation for the Consumer Operated and Oriented Plan (CO-OP) program, which was established and funded by ACA Section 1322. • Repealed the free choice voucher program, established by ACA Section 10108, which would have required certain employers to provide vouchers to qualified employees for purchasing coverage through a health insurance exchange. • Prohibited transfers from the Public Health and Social Services Emergency Fund to support the U.S. Public Health Sciences Track, pursuant to ACA Section 5315. • Removed the maintenance of effort requirement for use of monies in the Community Health Center Fund (CHCF), which was established and funded by ACA Section 10503 (as amended by HCERA Section 2303). • Mandated a Government Accountability Office (GAO) study of the costs and processes of ACA implementation, and a Medicare actuarial analysis of the impact of the ACA’s private insurance reforms on employer-sponsored health insurance premiums. Legislative activity prior to enactment of P.L. 112-10. The Senate Appropriations Committee reported its version of the FY2011 Labor-HHS-ED appropriations bill (S. 3686) on August 2, 2010. The measure would have instructed the HHS Secretary to allocate the Prevention and Public Health Fund (PPHF) funds for FY2011 (i.e., $750 million) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 111-243). The House Appropriations Subcommittee on Labor-HHS-ED also approved a draft FY2011 bill, but the full committee took no further action on it. On February 19, 2011, the House by a vote of 235-189 passed its version of a full-year continuing resolution for FY2011 (H.R. 1). The bill included nine separate but overlapping provisions that would have prohibited using any of the discretionary funds provided in the bill to implement specific ACA provisions or the entire law. The Senate subsequently rejected H.R. 1 by a vote of 44-56 on March 9, 2011. CRS-13 Public Law and Date of Enactment Summary of Provisions FY2012 P.L. 112-74 Dec. 23, 2011 Consolidated Appropriations Act, 2012. Division F of P.L. 112-74 provided regular FY2012 appropriations for Labor-HHS-ED and included the following ACA-related provisions: • Rescinded $400 million of the remaining $3.8 billion for the CO-OP program; see P.L. 112-10, above. • Rescinded $10 million of the $15 million FY2012 appropriation for the Independent Payment Advisory Board (IPAB), which was authorized and funded by ACA Section 3403. • Instructed the HHS Secretary to establish a website with detailed information on the allocation and use of monies in the PPHF, which was established and funded by ACA Section 4002. • Prohibited the use of PPHF funds for lobbying, publicity, or propaganda purposes. Legislative activity prior to enactment of P.L. 112-74. The chairman of the House Appropriations Subcommittee on Labor-HHS-Education introduced a chairman’s bill (H.R. 3070) on September 29, 2011, but the subcommittee did not mark up or report the measure to the full committee. The bill received no full committee action. H.R. 3070, as introduced, included the following ACA-related provisions that would have: (1) rescinded the entire FY2012 appropriations for CHCF, PPHF, IPAB, the pregnancy assistance grants, the home visitation program, state Aging and Disability Resource Centers (ADRCs), and the health workforce demonstration grants; (2) rescinded all the remaining CO-OP funds (i.e., $3.8 billion); (3) rescinded $1.862 billion of the $10 billion appropriation for the Center for Medicare and Medicaid Innovation (CMI) for the period FY2011-FY2019; and (4) prohibited using any of the discretionary funds provided in the bill to implement and administer the ACA until 90 days after all ACA legal challenges are complete. The House Appropriations Committee reported the FY2012 Financial Services appropriations bill (H.R. 2434, H.Rept. 112-136) on July 7, 2011. The measure included the following ACA-related provisions that would have: (1) prohibited the IRS from using any of the discretionary funds provided in the bill to implement the ACA individual mandate; and (2) prohibited the transfer of any ACA funds to the IRS. The Senate Appropriations Committee reported its version of the FY2012 Labor-HHS-ED appropriations bill (S. 1599) on September 22, 2011. Similar to the previous year’s bill, S. 1599 would have instructed the HHS Secretary to allocate the PPHF funds for FY2012 (i.e., $1 billion) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 112-84). In addition, S.Rept. 112-84 included language directing the HHS Secretary to submit a detailed report on all the recipients of PPHF funding. The Senate Appropriations Committee reported its FY2012 Financial Services appropriations bill (S. 1573) on September 15, 2011. The measure did not include any ACA provisions. However, the accompanying committee report (S.Rept. 112-79) directed the IRS to submit a detailed table itemizing each fund transfer from HHS to the IRS for the purpose of ACA implementation2014. P.L. 113-46 provides continuing appropriations for the federal government through January 15, 2014, generally at FY2013 post-sequestration funding levels. It includes the following ACA-related provisions: • Requires the HHS Secretary to certify in a report to Congress, due by January 1, 2014, that the health exchanges are verifying the eligibility of individuals applying for premium tax credits and cost-sharing subsidies consistent with the requirements of the ACA. • Requires the HHS Inspector General to report to Congress not later than July 1, 2014, on the effectiveness of procedures and safeguards provided under the ACA for preventing exchange applicants from submitting inaccurate or fraudulent information. Legislative activity prior to enactment of P.L. 113-46. With the enactment of the Continuing Appropriations Act, 2014, the federal government resumed full operations on October 17, 2013, after a 16-day partial shutdown of its activities and programs. The shutdown began on October 1, the beginning of FY2014, after the House and the Senate failed to agree on a continuing resolution (CR) to fund the government. On September 20, 2013, the House approved an FY2014 CR (H.J.Res. 59) to provide temporary funding for the federal government through December 15. H.J.Res. 59, as passed by the House, incorporated language that would have prohibited the use of any federal funds to carry out the ACA. The Senate amendment to H.J.Res. 59 did not incorporate the House ACA defunding language. On September 29, the House amended the Senate amendment with language that would have (1) repealed the ACA’s medical device tax, and (2) delayed the law’s implementation by one year, but the Senate tabled both of these amendments. On September 30, the House further amended the Senate amendment by adding language to (1) delay the ACA’s individual insurance mandate by one year, and (2) expand the ACA’s requirement that Members of Congress and their staff obtain health coverage through the exchanges to include the President, Vice President, and political appointees, and prohibit any premium contribution by the government. Once again, the Senate tabled the House amendments. Earlier in the summer, the House and Senate Appropriations Committees took the following actions on FY2014 appropriations. The Senate Appropriations Committee reported its FY2014 Labor-HHS-ED appropriations bill (S. 1284) on July 11, 2013. For the fourth year in a row, the Senate’s L-HHS-ED appropriations bill would instruct the HHS Secretary to allocate the PPHF funds (i.e., $1 billion for FY2014, reflecting the rescission in P.L. 112-96) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 113-71). S. 1284 also would prohibit the Secretary from making any further transfers of PPHF funds. In addition, the bill would direct the HHS Secretary to establish a website with detailed information on the allocation and use of PPHF funds. S. 1284 would provide CMS with its requested increase in discretionary funds for ACA implementation in FY2014. The Senate Appropriations Committee reported its FY2014 Financial Services appropriations bill (S. 1371, S.Rept. 113-80) on July 25, 2013. S. 1371 would provide some but not all of the requested increase in IRS funding for ACA implementation. The House Appropriations Committee reported its version of the FY2014 Financial Services appropriations bill (H.R. 2786, H.Rept. 113-172) on July 23, 2013. The measure would not provide any of the new IRS funds requested in the President’s FY2014 budget for ACA implementation. H.R. 2786, as reported, would prohibit the IRS from using any of the discretionary funds provided in the bill to implement the individual mandate and would prohibit transfers from HHS to IRS to implement the ACA. CRS-14 Public Law and Date of Enactment Summary of Provisions FY2013 P.L. 113-6 Mar. 26, 2013 Consolidated and Further Continuing Appropriations Act, 2013. Division F, Title V of P.L. 113-6 provided full-year continuing appropriations for Labor-HHS-ED for FY2013 generally at FY2012 levels, but with some spending adjustments—reductions and increases—for specified programs. It included the following ACA-related provisions: • Rescinded $200 million of the $500 million transfer from the Medicare Part A and Part B trust funds for the 5-year Community-Based Care Transition Program, which was established and funded by ACA Section 3026. • Rescinded $10 million of IPAB’s FY2013 appropriation. Note that the PPHF website and the prohibition on using PPHF funds for lobbying, publicity, or propaganda purposes, which were included in P.L. 112-74 (see above), remained in effect in FY2013 under P.L. 113-6. Legislative activity prior to enactment of P.L. 113-6. The House Appropriations Subcommittee on Labor-HHS-ED approved a draft bill for FY2013 on July 18, 2012, but but no further action was taken. The measure did not include any of the new CMS funds requested in the President’s FY2013 budget for ACA implementation, and it would have have prohibited using any of the discretionary funding provided in the bill to support CMS’s Center for Consumer Information and Insurance Oversight (CCIIO). The draft bill also also included the following ACA-related provisions that would have: (1) rescinded the entire FY2013 appropriations for PPHF and IPAB, and rescinded the FY2013 base appropriation of $150 million for the Patient-Centered Outcomes Research Trust Fund (PCORTF); (2) rescinded $3 billion of the remaining $3.4 billion for the CO-OP funds (see P.L. 112-74, above); (3) rescinded $1.590 billion of the $10 billion appropriation for CMI for the period FY2011-FY2019; (4) rescinded $300 million of the $1.5 billion CHCF appropriation in FY2013 for community health centers; (5) prohibited using any of the discretionary funds provided in the bill to implement and administer the ACA; (6) instructed the HHS Secretary to establish a website with detailed information on the allocation and use of FY2013 PPHF funds; and (7) prohibited the use of PPHF funds for lobbying, publicity, or propaganda purposes. The House Appropriations Committee reported its FY2013 Financial Services appropriations bill (H.R. 6020, H.Rept. 112-550) on June 26, 2012. The measure did not include any of the new IRS funds requested in the President’s FY2013 budget for ACA implementation. H.R. 6020 would have prohibited the IRS from using any of the discretionary funds provided in the bill to carry out the transfer of ACA funds to the agency. The Senate Appropriations Committee reported its version of the FY2013 Labor-HHS-ED appropriations bill (S. 3295) on June 14, 2012. As with the Senate’s Labor-HHS-ED appropriations bills for the previous two fiscal years, S. 3295 would have instructed the HHS Secretary to allocate the PPHF funds for FY2013 (i.e., $1 billion, reflecting the rescission in P.L. 112-96) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 112-176). In addition, the bill would have directed the HHS Secretary to establish a website with detailed information on the allocation and use of PPHF funds. The Senate Appropriations Committee reported the FY2013 Financial Services appropriations bill (S. 3301) on June 14, 2012. The measure did not include any ACA-related provisions. However, the accompanying committee report (S.Rept. 112-177) directed the IRS to submit a detailed table itemizing each fund transfer from the Health Insurance Reform Implementation Fund (HIRIF) to the IRS for the purpose of ACA implementation. CRS-15 Public Law and Date of Enactment Summary of Provisions FY2014 P.L. 113-46 Oct. 17, 2013 ContinuingFY2012 P.L. 112-74 Dec. 23, 2011 Consolidated Appropriations Act, 2014. P.L. 113-46 provides continuing appropriations for the federal government through January 15, 2014, generally at FY2013 post-sequestration funding levels. It includes the following ACA-related provisions: • Requires the HHS Secretary to certify in a report to Congress, due by January 1, 2014, that the health exchanges are verifying the eligibility of individuals applying for premium tax credits and cost-sharing subsidies consistent with the requirements of the ACA. • Requires the HHS Inspector General to report to Congress not later than July 1, 2014, on the effectiveness of procedures and safeguards provided under the ACA for preventing exchange applicants from submitting inaccurate or fraudulent information. Legislative activity prior to enactment of P.L. 113-46. With the enactment of the Continuing Appropriations Act, 2014, the federal government resumed full operations on October 17, 2014, after a 16-day partial shutdown of its activities and programs. The shutdown began on October 1, the beginning of FY2014, after the House and the Senate failed to agree on a continuing resolution (CR) to fund the government. On September 20, 2013, the House approved an FY2014 CR (H.J.Res. 59) to provide temporary funding for the federal government through December 15. H.J.Res. 59, as passed by the House, incorporated language that would have prohibited the use of any federal funds to carry out the ACA. The Senate amendment to H.J.Res. 59 did not incorporate the House ACA defunding language. On September 29, the House amended the Senate amendment with language that would have (1) repealed the ACA’s medical device tax, and (2) delayed the law’s implementation by one year, but the Senate tabled both of these amendments. On September 30, the House further amended the Senate amendment by adding language to (1) delay the ACA’s individual insurance mandate by one year, and (2) expand the ACA’s requirement that Members of Congress and their staff obtain health coverage through the exchanges to include the President, Vice President, and political appointees, and prohibit any premium contribution by the government. Once again, the Senate tabled the House amendments. Earlier in the summer, the House and Senate Appropriations Committees took the following actions on FY2014 appropriations. The Senate Appropriations Committee reported its FY2014 Labor-HHS-ED appropriations bill (S. 1284) on July 11, 2013. For the fourth year in a row, the Senate’s L-HHS-ED appropriations bill would instruct the HHS Secretary to allocate the PPHF funds (i.e., $1 billion for FY2014, reflecting the rescission in P.L. 112-96) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 113-71). S. 1284 also would prohibit the Secretary from making any further transfers of PPHF funds. In addition, the bill would direct the HHS Secretary to establish a website with detailed information on the allocation and use of PPHF funds. S. 1284 would provide CMS with its requested increase in discretionary funds for ACA implementation in FY2014. The Senate Appropriations Committee reported its FY2014 Financial Services appropriations bill (S. 1371, S.Rept. 113-80) on July 25, 2013. S. 1371 would provide some but not all of the requested increase in IRS funding for ACA implementation. The House Appropriations Committee reported its version of the FY2014 Financial Services appropriations bill (H.R. 2786, H.Rept. 113-172) on July 23, 2013. The measure would not provide any of the new IRS funds requested in the President’s FY2014 budget for ACA implementation. H.R. 2786, as reported, would prohibit the IRS from using any of the discretionary funds provided in the bill to implement the individual mandate and would prohibit transfers from HHS to IRS to implement the ACA. Source: Prepared by the Congressional Research Service based on the text of the public laws listed in the table. CRS-16 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Appendix D. Administrative Actions to Delay ACA Implementation The Department of Health and Human Services (HHS) and the Department of the Treasury have taken a number of administrative decisions in 2013 to delay by one year various ACA mandates and other requirements. Those decisions are listed in Table D-1 in chronological order beginning with the earliest one. The following laws are referred to in the tables by their acronym: • Internal Revenue Code (IRC) • Public Health Service Act (PHSA) Congressional Research Service 17 Table D-1. Administrative Delays in ACA Implementation Source and Date Summary of Delay U.S. Department of Labor, “FAQs about Affordable Care Act Implementation Part XII,” February 20, 2013, http://www.dol.gov/ebsa/faqs/faq-aca12.html. Limitations on Group Health Plan Cost-Sharing. PHSA Section 2707(b), as added by ACA Section 1201, requires group health plans to ensure that any annual cost-sharing (e.g., deductibles) imposed under the plan for a plan year beginning on or after January 1, 2014, does not exceed the limitations established under ACA Section 1302(c)(1) and (c)(2). The Administration has provided a one-year grace period to insurers that use more than one benefits administrator that will allow them to apply the separate out-of-pocket limits to each set of benefits under the various administrators. Under this policy, for example, many group health plans will be able to maintain separate out-of-pocket limits for hospital and doctors’ services and for prescription drug coverage. U.S. Department of Health and Human Services, “Patient Protection and Affordable Care Act; Establishment of Exchanges and Qualified Health Plans; Small Business Health Options Program,” Proposed Rule, 78 Federal Register 15553-15558, March 11, 2013, http://www.gpo.gov/fdsys/pkg/FR2013-03-11/pdf/2013-04952.pdf. Small Business Exchanges (i.e., SHOPs). The Administration has proposed to delay until 2015 a requirement that SHOPs offer employers a choice of QHPs. For plan years beginning during 2014, SHOPs may offer a single QHP option. Letter from Kathleen Sebelius, Secretary of Health and Human Services, to Senator Maria Cantwell, March 22, 2013, http://www.cantwell.senate.gov/ public/_cache/files/43cebb4b-424a-4960-b88bd0d9e0bf3692/ Senator%20Cantwell%20final%20response%20on%2 0the%20Basic%20Health%20Plan.pdf. Basic Health Plan Option. The Administration is planning to delay implementing the Basic Health Program until 2015. [ACA Section 1331, as amended, permits states to establish a Basic Health Program in which states would contract with private-sector and cooperative health plans to provide health insurance coverage for certain low-income individuals not eligible for the state’s Medicaid program with incomes between 133% and 200% of the federal poverty level. States that decide to offer the Basic Health Option receive federal funding equal to 95% of the value of the premium tax credits and cost-sharing subsidies that eligible individuals would have received had they purchased coverage through the exchange.] U.S. Department of the Treasury, “Continuing to Implement the ACA in a Careful, Thoughtful Manner,” July 2, 2013, http://www.treasury.gov/ connect/blog/Pages/Continuing-to-Implement-theACA-in-a-Careful-Thoughtful-Manner-.aspx. Employer Mandate and Insurer Reporting. The Administration has delayed until 2015 the requirement that employers with at least 50 full-time equivalent employees provide health coverage for their full-time workers (and children under age 26) or risk paying a penalty. It has also delayed until 2015 the requirement for insurers to report certain information to the IRS. [IRC Section 6055 (as added by ACA Section 1502(a)) requires reporting by insurers, self-insuring employers, and other parties that provide health coverage. IRC Section 6056 (as added by ACA Section 1514(a)) requires certain employers to report on the health coverage they offer to their full-time employees.] CRS-18 Source and Date U.S. Department of Health and Human Services, “Medicaid and Children’s Health Insurance Programs: Essential Health Benefits for Alternative Benefit Plans, Eligibility Notices, Fair Hearing and Appeal Processes, and Premiums and Cost Sharing: Exchanges: Eligibility and Enrollment,” Final Rule, 78 Federal Register 42160-42322, July 15, 2013, http://www.gpo.gov/fdsys/pkg/FR-2013-07-15/pdf/ 2013-16271.pdf. Summary of Delay Exchange Applicant Eligibility and Verification; Electronic Notices. The July 15, 20132012. Division F of P.L. 112-74 provided regular FY2012 appropriations for Labor-HHS-ED and included the following ACA-related provisions: • Rescinded $400 million of the remaining $3.8 billion for the CO-OP program; see P.L. 112-10, above. • Rescinded $10 million of the $15 million FY2012 appropriation for the Independent Payment Advisory Board (IPAB), which was authorized and funded by ACA Section 3403. • Instructed the HHS Secretary to establish a website with detailed information on the allocation and use of monies in the PPHF, which was established and funded by ACA Section 4002. • Prohibited the use of PPHF funds for lobbying, publicity, or propaganda purposes. Legislative activity prior to enactment of P.L. 112-74. The chairman of the House Appropriations Subcommittee on Labor-HHS-Education introduced a chairman’s bill (H.R. 3070) on September 29, 2011, but the subcommittee did not mark up or report the measure to the full committee. The bill received no full committee action. H.R. 3070, as introduced, included the following ACA-related provisions that would have (1) rescinded the entire FY2012 appropriations for CHCF, PPHF, IPAB, the pregnancy assistance grants, the home visitation program, state Aging and Disability Resource Centers (ADRCs), and the health workforce demonstration grants; (2) rescinded all the remaining CO-OP funds (i.e., $3.8 billion); (3) rescinded $1.862 billion of the $10 billion appropriation for the Center for Medicare and Medicaid Innovation (CMI) for the period FY2011-FY2019; and (4) prohibited using any of the discretionary funds provided in the bill to implement and administer the ACA until 90 days after all ACA legal challenges are complete. The House Appropriations Committee reported the FY2012 Financial Services appropriations bill (H.R. 2434, H.Rept. 112-136) on July 7, 2011. The measure included the following ACA-related provisions that would have (1) prohibited the IRS from using any of the discretionary funds provided in the bill to implement the ACA individual mandate; and (2) prohibited the transfer of any ACA funds to the IRS. The Senate Appropriations Committee reported its version of the FY2012 Labor-HHS-ED appropriations bill (S. 1599) on September 22, 2011. Similar to the previous year’s bill, S. 1599 would have instructed the HHS Secretary to allocate the PPHF funds for FY2012 (i.e., $1 billion) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 112-84). In addition, S.Rept. 112-84 included language directing the HHS Secretary to submit a detailed report on all the recipients of PPHF funding. The Senate Appropriations Committee reported its FY2012 Financial Services appropriations bill (S. 1573) on September 15, 2011. The measure did not include any ACA provisions. However, the accompanying committee report (S.Rept. 112-79) directed the IRS to submit a detailed table itemizing each fund transfer from HHS to the IRS for the purpose of ACA implementation. CRS-16 Public Law and Date of Enactment Summary of Provisions FY2011 P.L. 112-10 Apr. 15, 2011 Department of Defense and Full-Year Continuing Appropriations Act, 2011. Division B, Title VIII of P.L. 112-10 provided full-year continuing appropriations for Labor-HHS-ED for FY2011 generally at FY2010 levels, but with numerous spending reductions for specified agencies and programs. It included the following ACA-related provisions: • Permanently canceled $2.2 billion of the $6 billion appropriation for the Consumer Operated and Oriented Plan (CO-OP) program, which was established and funded by ACA Section 1322. • Repealed the free choice voucher program, established by ACA Section 10108, which would have required certain employers to provide vouchers to qualified employees for purchasing coverage through a health insurance exchange. • Prohibited transfers from the Public Health and Social Services Emergency Fund to support the U.S. Public Health Sciences Track, pursuant to ACA Section 5315. • Removed the maintenance of effort requirement for use of monies in the Community Health Center Fund (CHCF), which was established and funded by ACA Section 10503 (as amended by HCERA Section 2303). • Mandated a Government Accountability Office (GAO) study of the costs and processes of ACA implementation, and a Medicare actuarial analysis of the impact of the ACA’s private insurance reforms on employer-sponsored health insurance premiums. Legislative activity prior to enactment of P.L. 112-10. The Senate Appropriations Committee reported its version of the FY2011 Labor-HHS-ED appropriations bill (S. 3686) on August 2, 2010. The measure would have instructed the HHS Secretary to allocate the Prevention and Public Health Fund (PPHF) funds for FY2011 (i.e., $750 million) to the programs specified, and in the amounts specified, in a table included in the accompanying committee report (S.Rept. 111-243). The House Appropriations Subcommittee on Labor-HHS-ED also approved a draft FY2011 bill, but the full committee took no further action on it. On February 19, 2011, the House by a vote of 235-189 passed its version of a full-year continuing resolution for FY2011 (H.R. 1). The bill included nine separate but overlapping provisions that would have prohibited using any of the discretionary funds provided in the bill to implement specific ACA provisions or the entire law. The Senate subsequently rejected H.R. 1 by a vote of 44-56 on March 9, 2011. Source: Prepared by the Congressional Research Service based on the text of the public laws listed in the table. CRS-17 Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Appendix D. Administrative Actions to Delay Implementation of Specific ACA Provisions The Department of Health and Human Services (HHS) and the Department of the Treasury have taken a number of administrative decisions in 2013 to delay by one year various ACA mandates and other requirements. These decisions are listed in Table D-1 in reverse chronological order beginning with the most recent one. Two other recent announcements by the Administration are excluded from the table because neither one represents a one-year delay of an ACA statutory or regulatory requirement. Nevertheless, both announcements have attracted a good deal of attention. First, the Administration will exempt from the individual mandate penalty those individuals who wait until after February 15, 2014, to enroll in a health plan offered through an exchange during the initial enrollment period.17 Second, the Administration has established a transitional policy, which it is encouraging state insurance commissioners to adopt. Under the policy, insurers may choose to renew noncompliant health plans that have been cancelled, or are slated for cancellation. The intent of this transitional policy is to allow Americans whose insurance companies have cancelled (or are about to cancel) their insurance coverage for 2014 to remain in their plans. The policy was prompted by the decision of insurers to send cancellation notices to individuals and small businesses with health plans in the individual and small group markets that do not meet the ACA’s new standards for health insurance coverage.18 The following laws are referred to in Table D-1 by their acronym: • Internal Revenue Code (IRC) • Public Health Service Act (PHSA) 17 Beginning in 2014, the ACA requires most U.S. citizens and legal residents to maintain minimum essential health coverage. Individuals without coverage for three consecutive months will have to pay a penalty unless they qualify for one of the statutory exemptions. In its ACA rulemaking, CMS specified that the initial open enrollment period for individuals to enroll in coverage through the exchanges would extend from October 1, 2013, through March 31, 2014. HHS also specified the coverage effective dates. For individuals who sign up for coverage between the 1st and 15th of a given month, the coverage effective date is the first day of the immediately following month. However, for those who sign up between the 16th and end of a given month, the coverage effective date is the first day of the second following month. Thus, an individual who signs up on February 16, 2014, would not be insured until April 1, 2014. That individual would be uninsured for the first three months of 2014 and would have to pay a fine, unless otherwise exempt. On October 28, 2013, CMS exercised its authority under IRC Section 5000A (as added by ACA Section 1501(b)) to establish a hardship exemption in order to provide relief for such individuals who wait until after February 15, 2014, to enroll. For more information, see http://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/ Downloads/enrollment-period-faq-10-28-2013.pdf. Note: On November 22, 2013, HHS announced that next month (December) individuals will have until the 23rd, rather than the 15th, to sign up for coverage that begins on January 1, 2014. This exception to the policy for coverage effective dates applies only to the month of December. 18 Under the ACA, health plans that consumers had at the time the law was enacted in 2010 were “grandfathered” in and have existed largely unchanged since the law’s enactment. Grandfathered plans do not have to adopt many of the ACA’s new requirements for health insurance, including coverage of essential health benefits and other consumer protections that take effect in 2014. However, new plans purchased since the law’s enactment have to meet all the ACA requirements. For more information, see http://www.whitehouse.gov/the-press-office/2013/11/14/fact-sheet-newadministration-proposal-help-consumers-facing-cancellatio. Congressional Research Service 18 Table D-1. Administrative Delays in ACA Implementation Source and Date U.S. Department of Health and Human Services, “Medicaid and Children’s Health Insurance Programs: Essential Health Benefits for Alternative Benefit Plans, Eligibility Notices, Fair Hearing and Appeal Processes, and Premiums and Cost Sharing: Exchanges: Eligibility and Enrollment,” Final Rule, 78 Federal Register 42160-42322, July 15, 2013, http://www.gpo.gov/fdsys/pkg/FR-2013-07-15/pdf/ 2013-16271.pdf. U.S. Department of the Treasury, “Continuing to Implement the ACA in a Careful, Thoughtful Manner,” July 2, 2013, http://www.treasury.gov/ connect/blog/Pages/Continuing-to-Implement-theACA-in-a-Careful-Thoughtful-Manner-.aspx. CRS-19 Summary of Delay Exchange Applicant Eligibility and Verification; Electronic Notices. The July 15, 2013, final rule on health insurance exchange eligibility and enrollment included the following one-year delays: • State-based exchanges will not be required until 2015 to verify applicants’ information regarding possible employer coverage in order to determine eligibility for premium tax credits. During 2014 the exchanges may accept an applicant’s attestation without further verification. [Under IRC Section 36B(c)(2)(C), as added by ACA Section 1401(a), individuals whose employer offers a health plan that is affordable (i.e., the employee’s share of the premium does not exceed 9.5% of the employee’s household income) and provides minimum value (i.e., the plan’s share of the total allowed costs of benefits provided under the plan is at least 60%) are not eligible for a premium tax credit through the exchange.] • While the government initially proposed an audit of each exchange applicant who reported an income that was at least 10% below the amount indicated by Internal Revenue Service (IRS) and Social Security Administration (SSA) records, the final rule permits state-based exchanges during 2014 to audit less than 100% of all such individuals provided the sample size used is statistically significant. [Under IRC Section 36B(b), as added by ACA Section 1401(a), individuals and families who enroll in qualified health plans (QHPs) offered through an exchange are eligible for refundable premium tax credits if their income is between 100% and 400% of the federal poverty level.] • The federal government has delayed until 2015 a requirement that state Medicaid agencies provide notices electronically to beneficiaries. Between October 1, 2013, and January 1, 2015, state Medicaid agencies must give individuals the choice to receive notices in electronic format or by regular mail. Agencies must ensure that an individual’s choice to receive electronic notices is confirmed by regular mail, and must inform the individual of his or her right to switch to receiving notice through regular mail. [42 C.F.R. 435.918] Note that exchanges must also provide required notices by regular mail or, if an individual elects, electronically, provided that the specifications for electronic notices in 42 C.F.R. 435.918 are met. However, exchanges may choose to delay until 2015 the requirement in 42 C.F.R. 435.918(b)(1) that individuals who choose to receive electronic notices receive confirmation by mail. [45 C.F.R. 155.230(d)] Source: Prepared by the Congressional Research Service based on a review of the documents cited in the table. CRS-19(45 C.F.R. 155.230(d)) Employer Mandate and Insurer Reporting. The Administration has delayed until 2015 the ACA requirement that employers with at least 50 full-time equivalent employees provide health coverage for their full-time workers (and children under age 26) or risk paying a penalty. It also has delayed until 2015 the requirement for employers and insurers to report certain information to the IRS.a [IRC Section 6055, as added by ACA Section 1502(a), requires reporting by insurers, self-insuring employers, and other parties that provide health coverage. IRC Section 6056, as added by ACA Section 1514(a), requires certain employers to report on the health coverage they offer to their fulltime employees.] Source and Date Summary of Delay Letter from Kathleen Sebelius, Secretary of Health and Human Services, to Senator Maria Cantwell, March 22, 2013, http://www.cantwell.senate.gov/ public/_cache/files/43cebb4b-424a-4960-b88bd0d9e0bf3692/ Senator%20Cantwell%20final%20response%20on%2 0the%20Basic%20Health%20Plan.pdf. Basic Health Plan Option. The Administration plans to delay implementing the Basic Health Program until 2015. [ACA Section 1331, as amended, permits states to establish a Basic Health Program in which states would contract with private-sector and cooperative health plans to provide health insurance coverage for certain low-income individuals not eligible for the state’s Medicaid program with incomes between 133% and 200% of the federal poverty level. States that decide to offer the Basic Health Option receive federal funding equal to 95% of the value of the premium tax credits and cost-sharing subsidies that eligible individuals would have received had they purchased coverage through the exchange.] U.S. Department of Health and Human Services, “Patient Protection and Affordable Care Act; Establishment of Exchanges and Qualified Health Plans; Small Business Health Options Program,” Proposed Rule, 78 Federal Register 15553-15558, March 11, 2013, http://www.gpo.gov/fdsys/pkg/FR2013-03-11/pdf/2013-04952.pdf. Small Business Exchanges (i.e., SHOPs). The Administration proposes delaying until 2015 a requirement that SHOPs offer employers a choice of QHPs. For plan years beginning during 2014, SHOPs may offer a single QHP option. U.S. Department of Labor, “FAQs about Affordable Care Act Implementation Part XII,” February 20, 2013, http://www.dol.gov/ebsa/faqs/faq-aca12.html. Limitations on Group Health Plan Cost-Sharing. PHSA Section 2707(b), as added by ACA Section 1201, requires group health plans to ensure that any annual cost-sharing (e.g., deductibles) imposed under the plan for a plan year beginning on or after January 1, 2014, does not exceed the limitations established under ACA Section 1302(c)(1) and (c)(2). The Administration has provided a one-year grace period to insurers that use more than one benefits administrator that will allow them to apply the separate out-of-pocket limits to each set of benefits under the various administrators. Under this policy, for example, many group health plans will be able to maintain separate out-of-pocket limits for hospital and doctors’ services and for prescription drug coverage. Source: Prepared by the Congressional Research Service based on a review of the documents cited in the table. a. CRS-20 The Administration exercised its administrative authority under IRC Section 7805(a) to grant transition relief for 2014 from implementing the ACA’s employer mandate and related reporting requirements. Legislative Actions to Repeal, Defund, or Delay the Affordable Care Act Author Contact Information C. Stephen Redhead Specialist in Health Policy credhead@crs.loc.gov, 7-2261 Congressional Research Service Janet Kinzer Information Research Specialist jkinzer@crs.loc.gov, 7-7561 2021