Affordable Care Act Employer Mandate Delayed


Affordable Care Act Employer Mandate Delayed

One of the core components of the Patient Protection and Affordable Care Act is being delayed according to a memo released today by the treasury department. The employer mandate, a federal requirement that all employers with 50 or more employees provide affordable health insurance to their employees set to begin in 2014 is being delayed. The employer mandate was a federal requirement for all companies with more than 50 employees. Companies stood to pay an estimated $2000-$3000 per employee if they did not provide affordable coverage or a coverage that met the minimum essential benefits to their employees. This delay means businesses wont be penalized next year if they do not provide coverage to their employees.

As a result of this delay, the Obama Administration will not enforce the employer mandate until 2015.  Valerie Jarrett a senior advisor to Obama said in a white house blog post that the decision was made in part to “on going discussions with businesses” and the need of those businesses to have more time to understand the requirements and the rules.

 Affordable Care Act Employer Mandate Delayed

Over the past months the White House has had discussions with businesses regarding the reporting requirements, and some senior officials believe they can simplify the process. According to Bloomberg news, the Obama administration plans to invite employer groups to discuss ways of simplifying administrative burdens created by the mandate.

According to the note from the treasury department, within the next week formal guidance describing the transition will be publish by the administration to employers. The Administration refers to its past success of reducing the initial 21-page application for health insurance into a three-page application, as an example of what they are attempting to do in simplifying the employer reporting requirements.

While this delay provide a reprieve for employers with 50 or more employees, as of today the individual share responsibility requirement is still on the table, and will require every individual for the exception of a few to be require to have health insurance or pay a shared responsibility penalty in 2015.

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