The House of Representative on May 4 narrowly approved the American Health Care Act, a healthcare bill intended to replace the Affordable Care Act. The revised American Health Care Act passed on a 217-213 vote along party lines; all Democrats and 20 Republicans voted against the bill.
Despite celebrations at the White House, the legislation still faces a battle for approval in the Senate, where the Republican margin is much slimmer.
“The potential impact of certain AHCA provisions — in particular those that would curtail the expansion of state Medicaid programs — could negatively impact the profitability of healthcare providers, and by extension create headwinds for their staffing suppliers,” said Andrew Braswell, senior research analyst at Staffing Industry Analysts. “However, we would note that the bill passed through the House of Representatives by a fairly narrow margin, and will likely have a tougher path to approval through the Senate in its current form, if at all.”
Attorney George Reardon noted aspects of the legislation will have a ripple effect in the staffing industry.
The new legislation would repeal the ACA’s “employer mandate,” which makes larger employers choose between offering coverage to full-time employees and paying penalties.
Reardon said some staffing companies increased rates or imposed surcharges to compensate for the increased cost of the mandate. However, not as many workers signed up for the coverage as the companies expected, and now staffing buyers may push to have these contracts renegotiated if the AHCA becomes law.
The AHCA bill also might revive the use of “mini-meds” or “skinny” healthcare plans, options staffing firms could previously offer to provide coverage to employees. These plans could make a comeback in the staffing sector, according to Reardon.
Additionally, the new rules would alleviate concern among staffing clients that the IRS might deem contingent workers assigned to them to be their common-law employees.
Reardon cautioned firms not to jump the gun, and to seek legal counsel before making any adjustments.
