Healthcare News

Employer Mandate Delayed Until 2015

7/3/2013 The Obama administration unexpectedly announced a one-year delay in a central requirement of the new health care law that many companies provide health coverage for their workers or face fines.

Under the Affordable Care Act, companies with 50 or more workers must provide affordable coverage to their full-time employees or risk a series of escalating tax penalties if just one worker ends up getting government-subsidized insurance. Originally, that requirement was supposed to take effect January 1, 2014. It will now be delayed to 2015.

Most medium-sized and large businesses already offer health insurance, and the requirement was expected to have the biggest consequences for major chain hotels, restaurants and retail stores that employ many low-wage workers.

The delay in the employer requirement does not affect the law's requirement that individuals carry health insurance starting next year or pay fines.

Formal guidance implementing the delay is to be published next week.

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