Key takeaways

• Since the collapse of congressional efforts to “repeal and replace” the Affordable Care Act (“ACA”), both President Trump and Congress have taken steps that could have a significant impact on the healthcare industry.
• President Trump issued an Executive Order that directed several government agencies to begin rulemaking efforts that could facilitate the purchase of lower-cost health insurance plans that are exempt from many of the ACA’s regulations.  He also cut off Cost Sharing Reductions, which are subsidies that help low-income individuals pay for healthcare expenses.
• A bipartisan group of Senators released the “Bipartisan Health Care Stabilization Act of 2017.”  If enacted, it would (i) restore Cost Sharing Reductions; (ii) facilitate the federal government’s approval of Section 1332 waiver applications that would allow states to modify some (but not all) of the ACA’s requirements; and (iii) enable anyone to purchase catastrophic plans which have low premiums but very high deductibles.