Human Resources Blog Affordable Care Act Employer Mandate Provision Delayed

"Pay or Play Penalty" pushed to January 2015This week, the White House announced that it will delay by one year the enforcement of the Patient Protection and Affordable Care Act's (PPACA) employer mandate requiring employers with 50 or more employees to provide health insurance to their employees. Specifically, the administration delayed:PPACA's requirement that businesses with 50 or more employees offer coverage to their workers or pay a fineReporting requirements for insurers, self-insuring employers, and other parties that provide health coverageReporting requirements for certain employers with respect to the health coverage offered to their full-time employeesThe Obama administration made this announcement through the Department of Treasury blog and is expected to issue detailed guidance in the next few weeks to implement these delays. Additionally, Valerie Jarrett, who is a Senior Advisor to President Obama responsible for domestic policy, commented that the delay is a result of listening to employers' requests for less red tape and simplifying the reporting process. For starters, they plan to re-vamp their 21-page application for health insurance into a 3-page application.As of now, the public exchanges where people and uncovered employees can obtain competitive health insurance rates are still scheduled to open in October 2013, with a January 2014 effective date. Furthermore, the announcement did not delay the application of any of the 2014 plan/policy year market reforms, such as community rating, guarantee issue, no pre-existing condition exclusions, certain cost-sharing and out-of-pocket limits, and the requirement that small group and individual insurance provide for the full suite of essential health benefits (EHBs).Human Resources, Inc. will continue to update you with any changes in regards to the Affordable Care Act as it develops and the ways in which it may affect your business.Contact Us Today If You Have Any Questions