On Tuesday, 7/2/2013, the Obama Administration announced that it will wait one year before requiring businesses to provide health care coverage to employees or pay penalties under the Affordable Care Act (ACA), and in the meantime, the Administration will continue to gather employer feedback about the mandate and reporting requirements.
Under the ACA and associated regulations, if a corporation with at least 50 full-time employees doesn’t provide health benefits to at least 95 percent of full-time workers, and one or more full-time employees receives a subsidy to buy coverage on a health insurance exchange, the company will be forced to make a “shared responsibility payment.” That payment will amount to $2,000 per year for every full-time employee, not counting the first 30 employees.
The ACA includes information reporting by insurers, self-insuring employers and by certain employers with respect to the health coverage offered to their full-time employees. Proposed rules implementing those provisions are expected this summer.
Once the rules have been issued, the Obama Administration will work with employers, insurers and other reporting entities to “strongly encourage” them to voluntarily implement the information reporting in 2014. Real-world testing of the reporting systems in 2014 will contribute to a smoother transition as all employers implement the law at the beginning of 2015.
As always, emtrain will publish a guide or checklist to help HR staff implement ACA in 2015.