What Does this Mean for my Business?
On Tuesday, July 2nd, the Obama administration announced a one-year delay for the healthcare mandate that requires companies with 50 or more employees to provide health insurance coverage to all full-time employees or pay penalties. The “pay or play mandate,” as it is commonly called, has been the center of much debate and confusion since the PPACA (Patient Protection and Affordable Care Act) was originally passed in March of 2010.
This deadline delay is one of the many changes that have been introduced since the original bill was passed—with several revisions and “clarifications” expected in the future, as several members of Congress stand steadfast in their attempts to repeal the law in the next election cycle.
So what does all of this mean for your business?
Even though you now have an additional year before the mandate is in place, this doesn’t mean that the PPACA shouldn’t still be a top item on your priority list. While this does give you more time to develop your plan-of-action and investigate the best options for your bottom-line, it also means that you must continue to stay tuned-in to the other additional changes that may be announced in coming weeks.
Why the change in the mandate deadline?
Mark Mazur, Treasury Secretary issued this statement on the official US Treasury Website last Tuesday explaining the reasoning behind the delay:
“We recognize that the vast majority of businesses that will need to do this reporting [new employer and insurer reporting requirements under the Affordable Care Act]already provide health insurance to their workers, and we want to make sure it is easy for others to do so. We have listened to your feedback. And we are taking action….
This delay 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. Within the next week, we will publish formal guidance describing this transition.”
To read the full story on the US Treasury Website, click here.
If you have questions regarding how the PPACA will affect your business, contact our team at Quality Business Solutions—we are happy to discuss compliance issues with you and help you navigate these new changes.