On July 2, the Obama administration announced that it is delaying the component of healthcare reform that requires businesses with more than 50 employees to provide health insurance to their workers or pay a penalty. This requirement was originally slated to be implemented on January 1, 2014, but will now be delayed until 2015.
The delay does not change the individual health insurance mandate, requiring most Americans to purchase insurance by January 1, 2014. According to a blog post written by Valerie Jarrett, a senior adviser to President Obama, the health exchanges in which individuals can purchase insurance are still on track to open on October 1 of this year.
Why the delay? According to a blog post by Mark Mazur, assistant secretary for tax policy at the US Department of Treasury, the delay was implemented for two reasons:
“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.”
Keep an eye on our blog and future e-newsletters for further updates on this ever-changing topic. In the meantime, if you have any questions on this issue and how it may affect your business, feel free to contact us at 440-449-6800 or visit our website.