Employer Penalties Delayed

On July 2, 2013, the Treasury Department announced a one year delay in the employer mandate which penalizes employers with more than 50 employees for not providing a minimum level of affordable health insurance. Originally the penalty was to be effective starting in 2014. However, these penalties have officially been delayed until 2015.

According to the Treasury Department’s announcement (http://www.treasury.gov/ connect/blog/Pages/Continuing-to-Implement-the-ACA-in-a-Careful-Thoughtful-Manner-.aspx):
This is designed to meet two goals. 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.

The individual mandate is unaffected by the rule change, requiring most Americans to purchase insurance or pay a penalty, with tax credits provided to those who can’t afford coverage. Also unaffected is the establishment of exchanges in states for low-income Americans to obtain health insurance.

More information can be found at:
http://www.treasury.gov/connect/blog/Pages/Continuing-to-Implement-the-ACA-in-a-Careful-Thoughtful-Manner-.aspx

We will continue to keep you informed as more information becomes available.