Under the PPACA (Patient Protection & Affordable Care Act), the landmark health bill signed by President Obama in 2010, “large” employers – that is, employers with 50 employees or more – must provide health insurance for all of their full time employees. Employers must otherwise pay a $2000 penalty for each full-time employee who does not receive coverage.
On Tuesday, July 2nd, the White House announced that it would delay this particular provision of the ACA until 2015.
“We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,” said Mark Mazur, assistant secretary for tax policy at the Department of the Treasury, listing one of the many reasons for the delay. “This…delay will provide employers and businesses more time to update their health care coverage,” said Neil Trautwein of the National Retail Federation. The delay will also provide time for the federal government to simplify new reporting requirements.
Supporters, like the US Chamber of Commerce, praise the delay, as it will give employers and employees more time to adjust to the new requirements. Critics, however, such as the AHA (American Hospital Association) denounce the delay as “an erosion of the ACA’s coverage goals.”
Mazur also stated that rules regarding ACA reporting provisions and their implementation should be released this summer. “Real world testing of reporting systems in 2014 will contribute to a full implementation in 2015,” he said.
Mosquerea, Mary. “White House Delays Employer Mandate.” Online Posting. Healthcare IT News. HIMSS Media, 03 July 2013. Web. 09 July 2013.