ACA’s employer mandate will not take effect until 2015
The Obama administration unexpectedly announced Tuesday that it is delaying the employer mandate under the Patient Protection and Affordable Care Act (PPACA) 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. This will come as a relief to employers as Affordable Care Act (ACA) penalties could amount to as much as $3000 per employee for non-compliance. The delay will allow simplification of reporting requirements by authorities and will give businesses more time to adapt their health insurance policies.
In the coming week, the Treasury department will issue official guidance, with formal rules to be proposed later this summer. We will alert you to any emerging details.
If you have questions about these changes, call us at 1.800.250.2741 or email email@example.com.