Pub. 15 2016-2017 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 4 , 2 0 1 6 26 new jersey auto retailer How do the 75% of exchange enrollees receiving a subsidy afford coverage should the subsidy go away? Will Republicans have the votes to truly repeal? Challenges lie ahead, and concrete details are limited, but clues as to possible changes were seen throughout the campaign. Most Republicans admit there are several positive facets of Obamacare – free preventive care, elimination of pre-existing condition clauses, and extended dependent coverage. Those components are likely to remain a part of any future plan. A return to a more state-driven insurance regulation model is also likely. Additional areas addressed in Mr. Trump’s campaign include the ability for individuals to fully deduct health insurance premiums, insurance being sold across state lines to encourage competition, the expanded use of Health Savings Accounts, and the removal of barriers to prescription drug importation. A key area that is not yet clear is related to the coverage mandates put in place on both individuals and employers under the ACA. President-elect Trump has addressed repealing the individualmandate, but a less restrictive employer mandate may survive new regulations. Republicans are likely to addressmany areas related toObamacare in 2017, but most agree there is no overnight fix. It may take several years for President-elect Trump and the Republicans’ true vision to be realized. As a result, employers should stay the course with respect toACAreporting. The first roundof annual ACAreporting was completed in early 2016. This proved to be an arduous and/or expensive task as employers, brokers, and payroll vendors worked hard to make sense of the process. While the IRS had indicated that 2016’s reporting will not be scrutinized, expect that to change in 2017. Timelines are also expected to be tightened, without the extensions seen in 2016, and the possibility of penalties will be greater. The ever-changing health insurance marketplace will continue to see significant changes, with employers and insurance carriers con- tinuing to seek lower cost strategies, while the federal government works to create a new vision to best cover Americans. Many clues to the final direction should emerge throughout 2017, and it will be prudent to stay informed of the changes as they will certainly impact the dealership’s bottom line. Bruce Mazzarelli is a Vice President with Fotek Insurance Solutions, a Division of HUB International Northeast, LLC. He can be reached at 732.894.9849 or at bmazzarelli@fotek.net . THE STATE OF HEALTH  continued from page 25