Trump signs executive
order that could
effectively gut
Affordable Care
Act’s individual
mandate
President Trump signed an executive order late Friday giving federal
agencies broad powers to unwind regulations created under the
Affordable Care Act, which might include enforcement of the penalty
for people who fail to carry the health insurance that the law requires
of most Americans.
The executive order, signed in the Oval Office as one of the new
president’s first actions, directs agencies to grant relief to all
constituencies affected by the sprawling 2010 health-care law:
consumers, insurers, hospitals, doctors, pharmaceutical companies,
states and others. It does not describe specific federal rules to be
softened or lifted, but it appears to give room for agencies to eliminate
an array of ACA taxes and requirements.
However, some of these are embedded in the law, so it is unclear what
latitude the executive branch will have.
Though the new administration’s specific intentions are not yet clear,
the order’s breadth and early timing carry symbolic value for a president
who made repealing the ACA — his predecessor’s signature domestic
achievement — a leading campaign promise.
Additionally, the order’s language about easing economic and regulatory
burdens aligns with long-standing Republican orthodoxy that the
government exerts too heavy a hand on the U.S. health-care system.
“Potentially the biggest effect of this order could be widespread waivers
from the individual mandate, which would likely create chaos in the
individual insurance market,” said Larry Levitt, senior vice president
at the Kaiser Family Foundation. In addition, he said, the order
suggests that insurers may have new flexibility on the benefits they
must provide.
“This doesn’t grant any new powers to federal agencies, but it sends a
clear signal that they should use whatever authority they have to scale
back regulations and penalties. The Trump administration is looking
to unwind the ACA, not necessarily waiting for Congress,” Levitt said.
The order, several paragraphs long, does not identify which of the
many federal rules that exist under the ACA the new administration
intends to rewrite or eliminate. In general, federal rules cannot be
undone with a pen stroke but require a new rulemaking process to
replace or delete them.
But in giving agencies permission to “waive, defer, grant exemptions
from or delay” ACA rules, the order appears to create room for the
Department of Health and Human Services to narrow or gut a set of
medical benefits that the ACA compels insurers to include in health
plans that they sell to individuals and small businesses.
The order does not mention Medicaid, but it says one of its goals is
to “provide greater flexibility to States,” raising the question of
whether the Trump HHS might try to loosen rules for states that have
expanded the program for lower-income Americans, as the law allows.
The order directs all federal agencies “to minimize the unwarranted
economic and regulatory burdens” of the ACA — the first step of
Trump’s central campaign promise to repeal and replace former
president Barack Obama’s health-care plan.
Trump’s action drew swift protests from ACA proponents who
have coalesced to try to preserve the law. “While President Trump
may have promised a smooth transition” from the current law to a
replacement, said Leslie Dach, director of the fledging Protect Our
Care Coalition, “the executive order does the opposite, threatening
disruption for health providers and patients.”
Also late Friday, Reince Priebus, Trump’s chief of staff, issued an executive
memorandum ordering a freeze on regulations for all government
agencies.
The memo could freeze several new Energy Department efficiency
standards, such as those affecting portable air conditioners,
commercial boilers and uninterruptable power supplies, which were
issued Dec. 28 but not yet published in the Federal Register. The
regulations were part of the Obama administration’s broader effort to
cut greenhouse-gas emissions linked to climate change.
The move echoes a missive that then-White House Chief of Staff Rahm
Emanuel sent the heads of every federal agency on Jan. 20, 2009,
asking them to freeze any rules that had not yet been published in
the Federal Register, and to consider a 60-day extension of the
effective date of rules that had not yet gone into effect.
Also Friday, Trump signed the official paperwork installing Defense
Secretary James Mattis and Homeland Security Secretary John F. Kelly,
two of his Cabinet picks the Senate voted to confirm earlier in the day.
Trump’s health-care order came at the end of what had otherwise
been a largely ceremonial day. The White House did not immediately
return requests for comment.
During his campaign and afterward, Trump pledged that fundamental
changes to the health-care system would be a first priority. In a speech
outside Philadelphia six days before the November election, Trump
vowed to abolish the ACA before he was sworn in. “Have to do it,” he
said. “I will ask Congress to convene a special session so we can repeal
and replace.”
Last week, both chambers of Congress approved a budget resolution
that was the first legislative step toward repealing the 2010 law, which
was the centerpiece of the Obama administration’s health policies. But
health care was not among a half-dozen issue areas listed on the new
WhiteHouse.gov website that debuted shortly after noon on Friday.
Earlier Friday, in the Capitol, the new president took several more
perfunctory executive actions shortly after he was sworn in at noon,
the most notable being to overturn a recent mortgage-fee reduction —
geared at helping first-time and low-income home buyers — that Obama
announced last week and that called for the Federal Housing
Administration to cut its annual borrowing fee by a quarter of a
percentage point.
Trump also signed a waiver for Mattis to lead the Defense Department,
despite his having been retired from military service for only three years.
Without the waiver, federal law would have prohibited Mattis from
serving as defense secretary until he had been retired from the military
for at least seven years.
And just moments after Trump took the oath of office, he began
implementing his general vision, transforming the official White House
website with a new set of policy pledges that offered the broad contours
of the Trump administration’s top priorities. They included fierce
support for law enforcement and gun owners’ rights to defend
themselves. There were also some notable absences, such as the
omission of a policy page on climate change.
The issues page of Trump’s White House offered no new plans or
policies but rather a rehash of many of his most prominent campaign
promises — a signal to the nation that Trump, more pragmatic
than ideological, plans to implement at least the key guideposts of
his campaign vision.
The policies laid out on the website included plans to both withdraw
from and renegotiate major trade deals, grow the nation’s military
and increase cybersecurity capabilities, build a wall at the nation’s
southern border and deport undocumented immigrants who have
committed violent crimes.
“Our job is not to make life more comfortable for the rioter, the looter,
or the violent disrupter,” read the law-and-order section, which calls
for “more law enforcement” and “more effective policing.” “Our job is
to make life more comfortable for parents who want their kids to be
able to walk the streets safely. Or the senior citizen waiting for a bus.
Or the young child walking home from school.”
The climate change Web page that existed under Obama was not
replaced on the Trump site, with scant mention of climate change
under the new president’s energy plan. Also gone or not immediately
replaced were Web pages the previous administration had devoted to
the rights of lesbian, gay, bisexual and transgender individuals;
people with disabilities; and civil rights more generally.
Trump’s entire campaign was largely a repudiation of Obama, and a
new Republican administration is unlikely to have the same set of
issues and priorities as an outgoing Democratic one. But the missing
issue pages were particularly alarming to Democrats and activists,
especially after a vitriolic campaign in which Trump drew criticism
for seeming to mock a disabled reporter and being insensitive to the
needs and rights of minority communities.
On energy, Trump vowed to eliminate “harmful and unnecessary
policies” such as the Climate Action Plan and the Waters of the
United States rule. The first represents a variety of efforts Obama
had pursued to reduce U.S. greenhouse-gas emissions while the
second is a rule issued by the Environmental Protection Agency to
protect not only the largest waterways but also smaller tributaries
that others believe should fall under the jurisdiction of states rather
than the federal government.
The initial Trump website also did not devote a separate section to
immigration, another central tenet of his candidacy, though it
mentioned immigration under the law enforcement section. Despite
rumors within the immigration advocacy community that one of
Trump’s initial executive actions could be to revoke Obama’s
protections for “dreamers” — undocumented immigrants brought
to the country as young children — his website so far focused only on
big-picture enforcement and security goals.
“He is dedicated to enforcing our border laws, ending sanctuary cities,
and stemming the tide of lawlessness associated with illegal
immigration,” read part of the immigration section.
The new administration’s language echoed Trump’s tough rhetoric
on the campaign trail, including his promises to strengthen
the law enforcement community, crack down on what he views as a
the law enforcement community, crack down on what he views as a
broad range of trade violations and potentially forge alliances with
countries long considered dangerous rivals, such as Russia.
“Finally, in pursuing a foreign policy based on American interests,
we will embrace diplomacy,” read part of Trump’s policy vision. “The
world must know that we do not go abroad in search of enemies, that
we are always happy when old enemies become friends, and when old
friends become allies.”
Melania Trump, the first lady, also received a biographical overhaul.
Her web page featured a black and white glamour shot of her, and
touted her jewelry line and modeling career, describing the many
high fashion photographers with whom she has worked and the
glossy magazines for which she has posed (Vogue and the Sports
Illustrated swimsuit edition, among others).
The first lady’s biography also correctly stated that she began
college at the University of Ljubljana in Slovenia, her home country,
but never graduated — a fact that was misstated during the campaign.
Only at the very end of her page did Melania offer a glimpse of the
sort of first lady she might be: “Mrs. Trump cares deeply about issues
impacting women and children,” read the biography, “and she has
focused her platform as First Lady on the problem of cyber bullying
among our youth.”
Juliet Eilperin, Chris Mooney and Steven Mufson contributed to
this report.
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