Ease Up on ACA Reporting

No one goes into business because they love paperwork. Well, OK, someone in the stationery business must be into it, but most people abhor it. Which is why it would be nice if Congress and President Barack Obama could come together to pass a bi-partisan proposal to amend the Patient Protection and Affordable Care Act with the Commensense and Verification Reporting Act of 2015.

The legislation was introduced in the House of Representatives as HR 2712 by Representatives Diane Black, a Republican from Tennessee, and Mike Thompson, a California Democrat. In the Senate the legislation, S 1996, is being put forward by Democratic Senator Mark Warner and Republican Rob Portman. Their goal, supported by over 175 businesses and associations, is to simplify the reporting employers need to support enforcement of the Affordable Care Act’s individual and employer mandates. Those regulations, promulgated by the Internal Revenue Service 2014, are quite burdensome and confusing–more than is required to achieve the purpose of the ACA.

The ACA tweak doesn’t do away with the reporting of information necessary to administer the health care reform law. The proposals simply streamline the process and reduce the burden. The proposal doesn’t undermine the individual mandate nor does it relieve employers from their responsibility to provide coverage or pay a fee to help offset their employees moving into the individual market. What it does do is make it easier for employers to comply with the ACA while still providing regulators the information they need to police the system.

This isn’t the first run at simplifying reporting under the ACA. Legislation similar to HR 2712 and S 1996 was introduced in the last Congress. That bill, S 2176, went nowhere. So is there any reason to believe this year’s attempt will fare any better?

Well, maybe. Yes, it’s true that any legislation aimed at improving the ACA has a rough road. Republicans want to kill the Affordable Care Act, not fix it. The House has tried to repeal or undermine the ACA so often pundits and the press have a hard time keeping a tally. No one in the GOP wants to face a primary challenge accusing them of being soft on Obamacare.

But, Congress has proven they can come together on simple fixes to the Affordable Care Act, especially if they help businesses. In 2011 Congress and the White House came together to remove expansion of the 1099 reporting requirement from the ACA. And this month they worked together in a bi-partisan fashion to allow states flexibility in defining what is, and is not, a small group.

It’s this last accomplishment — passage of the Protecting Affordable Coverage for Employees Act — that provides a glimmer of hope that maybe the Commensense Reporting and Validation Act of 2015 has a snowball’s chance of passage. Maybe.

It won’t be easy, however, and if it happens at all it will be next year. Congress’ s dysfunction has reached epic proportions as represented by the fiasco over electing a Speaker. Over the next several weeks Republicans will be consumed with getting their house in order (you’ll pardon the pun). Little time will be left for a full agenda of major issues touching on keeping the country out of default, avoiding a government shutdown, determining the fate of the Export-Import Bank, and more.

Getting any legislation through Congress during 2016 is problematic because it’s an election year. Elections distract lawmakers. They tend to focus more on scoring political points than addressing real problems. It’s a problem.

All of this means that proponents of HR 2712 and S 1996 will need to position their paperwork fix as a political win for enough candidates — I mean, members of Congress–to get them to pay any attention to it at all. If they are successful in this, however, the small amount of momentum generated by the recent passage of The Protecting Affordable Coverage for Employees Act may be enough.

Assuming members of Congress hate paperwork as much as the rest of us.