For the second time in the last year, the Obama Administration has given certain businesses an extension to comply with the Affordable Care Act’s (ACA) healthcare mandate. Originally, employers would have been required to provide insurance by January 1, 2014, but were given a one-year extension to January 2015. Now, after the latest announcement, employers with 50-99 full-time equivalent (FTE) employees will have until January 2016 to offer employees affordable health insurance that meets ACA standards, or pay an employer responsibility payment.
“Today’s final regulations phase in the standards to ensure that larger employers either offer quality affordable coverage or make an employer responsibility payment starting in 2015,” said Mark J. Mazur, the assistant Treasury secretary for tax policy in a February 10 announcement.
The Impact of the Delay on Employers
It’s important to note that most employers in the United States will not be affected by the employer healthcare mandate, as the majority (96%) have fewer than 50 employees, and are thus exempt from the mandate.
The law will, however, impact larger employers—those with 100 or more employees (about 2 % of employers), the majority of which already offer affordable employee coverage, as well as employers with 50 to 99 employees (also about 2% of employers). These employers will have until 2016 to offer affordable quality coverage, or pay an employer responsibility payment.
Businesses looking for a group health plan should consult with an expert who knows the ins and outs of the AC, including how the employer responsibility payment will affect businesses. The exchange-certified agents at Benefit Packages can assist with finding coverage both through Covered California, the state’s health insurance exchange, or through a private plan. Call us at 1-800-356-3615 for more information and a quote today.