Large Employers Can Breathe a Sigh of Relief: One Year Reprieve for Affordable Care Act Pay or Play Mandate
UPDATE: THIS ARTICLE WAS WRITTEN PRIOR TO THE HEALTH INSURANCE MANDATE BEING DELAYED UNTIL 2016 FOR SELECT EMPLOYERS. READ ENA’S MOST RECENT ACA ALERT HERE.
On July 2, 2013, the United States Department of the Treasury, on behalf of the Administration, announced that the Affordable Care Act (ACA) employer mandate provision has been delayed until 2015. Large employers were preparing to either offer affordable, qualified group health coverage in 2014, or be subject to a penalty. Large employers now have until 2015 to comply with the ACA employer mandate.
According to the US Treasury statement “we are extending this transition relief to the employer shared responsibility payments. These payments will not apply for 2014. Any employer shared responsibility payments will not apply until 2015.” During the 2014 transition period, employers are strongly encouraged to maintain or expand health coverage. Within the next week, formal guidance will be published describing the transition period.
The announcement does not affect the individual mandate, the individual health insurance tax subsidies, or the state health insurance Marketplaces which are all scheduled to take effect January 1, 2014.
Source: US Treasury Statement
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