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PPACA After the Government Shutdown

October 17, 2013

Congress has passed and President Obama has signed the new Continuing Appropriations Act (the "Act"). The Act provides for continuing appropriations and raises the debt ceiling through early 2014, thus ending the government shutdown which began in early October.  Most readers are aware that dispute over the Patient Protection and Affordable Care Act of 2010 ("PPACA") played a significant role in the impasse which led to the government shutdown.  In this client alert, we discuss how the Act addresses PPACA and what employers need to know about its continuing implementation.

Despite various initiatives with more far-reaching implications for the future of health care reform, the Act contains only three limited provisions directly addressing PPACA:

  • The Department of Health and Human Services ("HHS") must ensure that the health care exchanges verify individuals' eligibility for the premium tax credit and the cost-sharing reductions which are intended to assist individuals in purchasing health insurance on the exchanges.

  • The Secretary of HHS must submit a report to Congress by January 1, 2014 detailing the procedures employed by the exchanges to verify eligibility for the premium tax credit and cost-sharing reductions.

  • The Inspector General of HHS must submit a report to Congress by July 1, 2014 regarding the effectiveness of the procedures and safeguards provided under PPACA for preventing the submission of inaccurate or fraudulent information by applicants for enrollment in a qualified health plan offered through an exchange.

It is important to understand that the Act alters neither the basic terms of the law nor the compliance deadlines for employers and individuals which were in place prior to the government shutdown.  We discussed some of those issues in our previous client alerts "PPACA 2014:  The Implications for Employers" and "Transitional Reinsurance Program Fee Applies to Self-Insured Group Health Plans".  For more information about your existing and future obligations under PPACA or other issues concerning your employee benefit plans, please contact Joanne C. Youn at jyoun@capdale.com or at 202.862.7855.





For more than 45 years, Caplin & Drysdale has been a leading provider of a full range of tax, tax controversy, and related legal services to companies, organizations, and individuals throughout the United States and around the world. With offices in New York City and Washington, D.C., the firm also provides counseling on matters relating to bankruptcy, creditors' rights, exempt organizations, employee benefits, private client services, corporate law, white collar defense, complex litigation, and political activity.

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This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

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Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2020 Caplin & Drysdale, Chartered
All Rights Reserved.

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