The Obama Administration late yesterday announced a second delay of the employer mandate portion of the Affordable Care Act (ACA). Employers with 50 to 99 employees will be given until 2016 to provide insurance coverage for their workers.
This delay means that businesses that do not provide health insurance in 2014 will not be penalized. Originally, the employer mandate was to have gone into effect Jan. 1.
Yesterday’s announcement marks the second delay of the employer mandate in less than a year. In July, the White House had delayed the employer mandate until 2015.
The Treasury Department decided to allow medium-sized businesses additional latitude because “they need more time to adjust to providing coverage,” the Washington Post reported.
The law requires that employers offer affordable insurance to full-time employees and their dependents. Currently, an employee who works 30 hours or more is considered full-time, but this definition has been hotly debated.
On Feb. 4 the House Ways and Means Committee approved a bill that addresses the definition of "full-time employee" under the Affordable Care Act.
Known as the Save American Workers Act (H.R. 2575) would specifically define "full-time employee" as an employee, "with respect to any month . . . who is employed on average at least 40 hours of service per week.''
H.R.2575 is expected to pass a full House vote, but its outcome in the Senate is less certain.
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