An AGC-supported provision within the Bipartisan Budget Act repeals the mandatory auto-enrollment of employees in employer-provided health care coverage. The provision originated in the Affordable Care Act (ACA) and forced employers with more than 200 full-time employees to automatically enroll a new full-time employee in a health plan within 90 days if he or she fails to choose or decline coverage. Employers would have also been required to continue to enroll current employees in a health plan. The requirement was in addition to the ACA’s individual and employer mandates, and other employee benefit laws.
For over four years, AGC has advocated that this provision should be repealed because enrolling employees automatically into coverage they did not select could result in unexpected payroll deductions for employees who can't afford it, or already have secured health care through other avenues like a spouse's employer, a parent's employer or an exchange.
The Senate could vote on the Budget Bill with the auto enrollment provision repeal as early as tomorrow. It is expected to pass the Senate and be signed into law.
For more information, please contact Jim Young at youngj@agc.org or Tamika Carter at cartert@agc.org.