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January 24, 2017
President Trump Issues Executive Order 13765 on the
Affordable Care Act
On January 24, 2017, President Donald Trump issued Executive Order (EO) 13765 on the Affordable Care
Act (ACA). Key highlights include:
• The EO directs the Department of Health and Human Services (HHS) and other relevant federal
agencies to take actions within their authority and discretion “to minimize the unwarranted
economic and regulatory burdens of the [ACA],” including actions “to waive, defer, grant exemptions
from, or delay the implementation of any provision or requirement of the [ACA] that would impose a
fiscal burden on any State,” or that would impose “a cost, fee, tax, penalty, or regulatory burden on
individuals, families, healthcare providers, health insurers, patients, recipients of healthcare
services, purchasers of health insurance, or makers of medical devices, products, or medications.”
• The EO does not identify specific ACA provisions to be waived, deferred or delayed, nor does the EO
change any statutory provisions or existing regulations. However, the EO could have a near-term
impact on agency enforcement of the ACA, such as potential waivers of individual mandate penalties.
• The EO expressly confirms that any regulatory changes taken in furtherance of the EO are subject to
the Administrative Procedure Act (APA) and other relevant laws. The APA generally requires a notice
and comment period before existing regulations can be altered or repealed, or before new regulations
can be issued. Thus, although the ACA’s “essential health benefits (EHB)” requirements are among
the provisions that have been highlighted as top priorities for repeal or reform by Republicans in
Congress, any changes to existing EHB rules would require compliance with the APA and other laws
applicable to regulatory changes, and/or a statutory amendment.
• Agencies are not expected to take substantive action on the ACA until the leadership of HHS, the
Centers for Medicare and Medicaid Services and other relevant agencies are confirmed.
SIDLEY UPDATE
Page 2
If you have any questions regarding this Sidley Update, please contact the Sidley lawyer with whom you usually work or
Stephanie P. Hales
Partner
shales@sidley.com
+1 202 736 8349
Patricia DeLoatche
Senior Policy Advisor
pdeloatche@sidley.com
+1 202 736 8862
Dora Hughes, M.D., M.P.H.
Senior Policy Advisor
dhughes@sidley.com
+1 202 736 8653
Laura R. Cohen
Policy Attorney
+1 202 736 8127
For more information and updates, please visit our
Health Matters: Navigating ACA Reform website.
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