The Obama administration delayed the implementation of the so-called employer mandate by a year, initially pushing the requirements off until 2015, past the midterm elections. However, in what is seemingly a concession to business, Treasury Department officials announced on Monday, February 10th that the administration would not enforce the rules across the board next year.
The employer mandate was originally intended to have all businesses employing more than 50 people either provide health insurance or face tax penalties this year (2014). The initial delay pushed this forward until 2015. The administration will now allow employers of 50-99 employees to wait until 2016 before being required to cover full-time staff or pay a penalty.
Large employers received something of a reprieve as well. According to these new regulations, businesses with more than 100 workers will only be required to offer coverage to 70% of their staff in 2015. In 2016 that percentage will rise to 95%. If employers fail to meet Affordable Care Act mandates, they will be fined $2,000 per individual beyond the first 30 employees.
The Merriam Agency will stay on top of ACA and keep you posted on new developments. If you have questions, please do not hesitate to call our office for further clarification.
Pros & Cons
While all may appear quiet on the health front, we can see by this week’s release of a 200-page document that the government has been quite busy. The constant change in the implementation of the ACA might be enough to cause lots of confusion, but it need not raise your blood pressure too high.
Our Health and Benefits Department Manager, Fran Foley, has demonstrated a superb understanding of the challenges and matching our clients’ needs to the right plans.
I’d be more than happy to introduce you to him – or you may email or call him directly at (877) MERRIAM, extension 205.