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On Wednesday, July 26, 2017, Senate Majority Leader Mitch McConnell (R-KY) held a vote for his repeal-only plan that would give lawmakers two more years to develop a replacement for the Affordable Care Act (ACA).
Opposing Senators believe this will only create more chaos in an already unstable situation for the American people. The Senate rejected the repeal now replace later proposal with votes tallying 45-55.
If it had passed, the repeal would still take two more years before going into effect. This would give Republicans a so-called transition period to develop a replacement plan.
In the meantime, the IRS is moving forward with enforcing ACA compliance. The IRS will continue holding Applicable Large Employers (ALEs) responsible for ACA reporting. Recent notices from the IRS indicate that they may send enforcement notices to inform employers of noncompliance penalties before the end of the year.
Are you unsure if your company qualifies as an ALE? An Applicable Large Employer (ALE) is an organization with 50 or more full-time employees, including full-time equivalent employees (FTEs). These ALEs are required to comply with the ACA regulations, which include providing affordable health insurance coverage to their employees and reporting on the coverage offered. ALEs must continue to meet their reporting requirements and be prepared for potential enforcement actions if they fail to comply.
