Affordable Care Act Executive Order: Legal Considerations (CRS Report for Congress)
Release Date |
Jan. 24, 2017 |
Report Number |
ACA-EO |
Source Agency |
Congressional Research Service |
Summary:
On January 20, 2017, President Donald J. Trump issued an executive order (EO) declaring his intention to “seek the
prompt repeal of the Patient Protection and Affordable Care Act [ACA]” while minimizing “economic and regulatory
burdens of the Act,” ensuring that the ACA is “efficiently implemented,” and preparing to allow states “more flexibility
and control.” Broadly, the EO issues the following three directives to executive branch agencies:
First, it directs agencies with authorities or responsibilities under the ACA to “waive, defer, grant exemptions
from, or delay the implementation of” any ACA provision that would impose a fiscal or regulatory burden on
states or a host of private entities (including individuals, health care providers, health insurers, and medical device
manufacturers).
Second, the EO directs those same agencies to provide greater flexibility and cooperation to states in
implementing healthcare programs.
Third, the EO directs all agencies with responsibilities relating to healthcare or health insurance to encourage the
development of a free and open interstate market for health services and health insurance.
While the EO does not amend any prior agency action or policy, it may potentially be seen as an articulation of the
Administration’s views on how the ACA should be implemented by executive agencies. Notwithstanding the significant
modifications it may foreshadow, the EO does not purport to repeal the ACA, nor could it. Additionally, as is common
practice with executive orders, the EO acknowledges that its directives are to be implemented to the extent permitted by
law, including requiring the use of notice-and-comment rulemaking where required by the Administrative Procedure
Act (APA).