WASHINGTON – Late on Tuesday afternoon the Obama
administration announced that the employer mandate of the health-care law would
be delayed another year.
“The Obama administration will not penalize businesses that
do not provide health insurance in 2014,” wrote the Washington Post, adding,
“Instead, it will delay enforcement of a major Affordable Care Act requirement
that all employers with more than 50 [full-time] employees provide coverage to
their workers until 2015.
In a WhiteHouse.gov blog post, Valerie Jarrett, senior
advisor and assistant to the president for intergovernmental affairs and public
engagement, wrote that the administration believes that employers need more
time for compliance: “Since employer responsibility payments can only be assessed
based on this new reporting, payments won’t be collected for 2014. This allows
employers the time to test the new reporting systems and make any necessary
adaptations to their health benefits while staying the course toward making
health coverage more affordable and accessible for their workers," she
wrote.
Moving forward, Jarrett offered a quick review of what small
and large businesses will need to know about the health law:
- “If you are a small business with less than 50
workers, the law’s employer shared responsibility policies does not apply to
you. Instead, you will gain access to the Small Business Health Options Program
that gives you the purchasing power of large businesses. In fact, you may be
eligible for a tax credit that covers up to half the cost of insurance if you
offer quality coverage to your employees
- If you own a business with more than 50 workers
that already offers full-time workers affordable, quality coverage, you are
fine – we’ll work with you to keep that coverage affordable.
- And if you are a company with more than 50
employees but choose not to offer quality affordable coverage, we have provided
as much flexibility and transition time as possible for you to move to
providing affordable, quality coverage to your workers.”
Stay tuned for more information as it becomes available.