Employer Mandate portion of Affordable Care Act delayed to 2015: An Article Authored by Loree Dubois, CPA from KLR - Accounting Firm Boston, Massachusetts, Providence, Rhode Island

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Employer Mandate portion of Affordable Care Act delayed to 2015

posted Jul 3, 2013 by Loree Dubois, CPA

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UPDATE ON THE AFFORDABLE CARE ACT—- The Obama administration unexpectedly announced Tuesday it is delaying the employer mandate under the Patient Protection and Affordable Care Act until 2015.

The mandate, which requires mid-sized and large employers to offer health insurance coverage to their workers, was one of the main requirements of the health care overhaul that was set to go into effect Jan. 1, 2014.

The Treasury Department announced Tuesday that it would delay its enforcement an entire year after hearing numerous concerns from employers about the challenges of its implementation. This delay is designed to meet two goals.

  1. It will allow the Treasury Department to simplify the new reporting requirements consistent with the law.
  2. 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.

Within the next week, the Treasury department will issue official guidance to insurers, self-insuring employers and other parties that provide health coverage with formal rules will be proposed later this summer.

The PPACA requires employers with more than 50 full-time workers to offer health insurance or pay steep fines. Various studies and employer polls found that numerous companies would downsize their companies or cut hours for its employees to counter the mandate.

Read more on the Affordable Care Act.