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Obamacare Update: Employer Mandate Pushed Back to 2015

Confusion over implementation procedures, health insurance exchanges cited for the delay.

Date: July 2013

In a U.S. Department of Treasury blog post on July 2, the Obama administration announced a delay, until 2015, in the implementation of the Employer Mandate contained in the Patient Protection and Affordable Care Act (or “Obamacare”).

As we discussed in a March 2013 article, when implemented the Employer Mandate will require employers with 50 or more employees to (a) provide health insurance to all full-time employees, or (b) pay a tax for each full-time employee.

In recent months, many employers seeking to comply with the law have complained that the government’s guidance for implementing the Employer Mandate is too confusing, a problem exacerbated by the lack of guidance regarding how the government-operated health insurance exchanges will operate.​​

In announcing the delay, the administration explained that it wishes to work with employers, insurers and other interested parties throughout the remainder of this year and 2014 to voluntarily implement, and monitor the effects of, the Employer Mandate’s extensive reporting requirements. The administration explained that “real-world testing of reporting systems in 2014 will contribute to a smoother transition to full implementation in 2015.”
Because employer taxes associated with the Employer Mandate are based on the law’s reporting requirements, those taxes will be delayed until 2015 as well.


Questions

In the event you need assistance in implementing Obamacare at your business, please contact a member of Barton Law’s employment law practice group at 480-425-2600 or by email.

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