Employer Health Care Requirement Delayed 1 Yr.
The Obama administration announced Tuesday that it is delaying the employer-shared responsibility health care requirements for large employers by a full year, to 2015.
The portion of the 2010 Affordable Care Act (ACA) that was delayed requires employers with more than 50 full-time workers to offer a certain level of health insurance coverage or be subject to monetary penalties—a provision known as “pay or play.” It was previously scheduled to kick in next year.
The U.S. Department of the Treasury announced the news Tuesday on its website. The administration believes the extra year will help employers better prepare for the detailed, sweeping changes to employer and insurer health care reporting and coverage requirements, the Treasury department said.
“We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,” wrote Assistant Secretary for Tax Policy Mark Mazur, in announcing the delay. “[The delay] will allow us to consider ways to simplify the new reporting requirements consistent with the law. . . . It will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.”
To learn more from experts about how employers can best prepare for the ACA and how their strategy may be affected by the latest delay, register for Twin Cities Business’ Health Care Reform Webinar series.
Employer groups and the U.S. Chamber of Commerce applauded the delay and took the opportunity to reiterate their disapproval for portions of the ACA.
“Since the beginning of the health reform debate the U.S. Chamber has consistently stated the employer mandate and other burdensome provisions of 'Obamacare' would be harmful to job creation and economic growth,” Chamber President Thomas Donohue said in a statement Wednesday. “The administration’s decision to recognize this fact yesterday and delay the implementation of the employer mandate is welcomed by the business community and will help avoid some serious near-term economic consequences of this law.”