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Health Care Reform Employer Mandate Delayed Until 2015

July 03 - Posted at 2:30 PM Tagged: , , , , , , ,

The U.S. Administration announced on July 2, 2013,  that it will not require employers  to provide health insurance for full time workers under the Health Care Reform Employer Mandate (also known as Pay or Play) until 2015. This move will cause a delay in a key provision of Health Care Reform that was scheduled to go into effect in 2014.  The delay represents the administration’s response to widespread complaints about the reporting requirements for employers who are subject to the mandate.

 

The Affordable Care Act requires all employers with more than 50 full time workers to provide affordable health insurance or face a fine as much as $3000 per employee. The policy has raised concerns that companies would downsize their workforce or cut workers’ hours in order to dodge the new mandate.

 

The Obama Administration has announced that this provision was delayed so officials could simplify reporting requirements and give employers ample time to adjust their health care coverage.

 

The postponement does not affect other central provisions of the law, including the individual mandate or the establishment of the health insurance marketplaces, known as Exchanges, which are both still set to go into effect in January 2014.

 

Formal guidance is expected to be released this week. The Obama Administration has said that once the formal guidance is release they will work with employers to encourage them to voluntarily implement this information in 2014 to allow for a smoother transition into 2015.

How to Avoid the Health Care Reform Penalty for Groups With Over 50 Employees

July 02 - Posted at 2:02 PM Tagged: , , , , , , ,

Beginning in 2014, large employers (those with 50 or more employees) that do not provide “qualifying” coverage and who have employees who receive a subsidy for Exchange coverage may be subject to certain tax penalties, as high a $3000 per year per employee, under Health Care Reform.  We can show you a lower-cost alternative to traditional major medical that will help you avoid these penalties. The cost ranges from $105-$125 per month for employee only coverage and the premium is tax deductible to the employer.

 

For employers who choose to not offer an ACA compliant plan in 2014, the penalty is an excise tax, therefore not deductible. 

 

This could be the perfect solution for large employers who are looking for an alternative to the high cost of traditional major medical coverage while avoiding the potential penalties of ACA. 

 

Please contact our office if you would like more information about this program and your options as an employer in 2014 with Health Care Reform.

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