One of the major initiatives of the Affordable Care Act — the mandate for employers with 50+ employees to provide health insurance — has been delayed one year.
Originally scheduled to be enforced starting on January 1st, 2014, Assistant Treasury Secretary for Tax Policy Mark Mazur posted an article stating that the “Pay or Play” initiative was being delayed until 2015.
Reasons for the Delay
Within the article, Mr. Mazur provided insight into why the White House was taking this action. Here is one of the key quotes from the article:
“First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law. Second, 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, we will publish formal guidance describing this transition. Just like the Administration’s effort to turn the initial 21-page application for health insurance into a three-page application, we are working hard to adapt and to be flexible about reporting requirements as we implement the law.”
This delay may assist businesses that need to adjust their health coverage plans to deal with new rules regarding the “full-time employee” definition of 30 hours or due to hovering around 50 full-time employees.
Please stay tuned to CBG Benefits for more information about this important topic.
If you have any questions, please contact a CBG Benefits representative at 781-759-1222 or via our online contact form.