09 Jul

ACA Employer Mandate Delay

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Dear Valued Clients,

Last week, the US Treasury Department announced that it will delay the enforcement of the mandatory employer and insurer reporting requirements under the Affordable Care Act (ACA) for one year. Employers now have until 2015 to comply with the health care reform law. The Treasury is referring to this delay as the “2014 Transition Period,” where they will do real-world testing of reporting systems in 2014 that will contribute to a smoother transition to full implementation in 2015.

According to the announcement, the government health exchange for individual coverage will still open on schedule this October 1st, and the corresponding premium subsidies will be available to help pay for individual plan premiums in 2014.

The White House says this decision is the result of “listening to businesses about the health care law.” American businesses have already incurred tremendous expense and lost opportunity costs having to deal with a law that the politicians didn’t read or understand themselves when they so carelessly passed it in the first place. The fact that they are delaying implementation at this late stage of the game and are “cutting red tape, simplifying the reporting process and giving businesses more time to comply,” is an indictment of their incompetence.

Within the next week, the Administration will publish formal guidance describing this transition. Look for more information from Vensure about the ACA in the coming weeks.

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