Recent Changes to the Employer Mandate of ObamaCare Put Off Until 2015
With less than six months to go before the January 1, 2014 deadline, the White House announced on Tuesday July 2nd that a key requirement—the employer health insurance mandate—will be deferred until 2015.
You can view the full U.S. Department of Treasury statement here.
Getting a clear and accurate picture of how businesses are going to be impacted by the Affordable Care Act has been a little like the wild west.
Some report it’s never going to happen. Others predict the total destruction of small to medium-sized businesses.
The reality is many businesses are trying to figure out what it all means, how to ensure they are compliant, keep costs in line, and stay competitive.
With a complex health care market, political opposition, and unclear employer requirements, doubts have emerged about how the new laws will be implemented.
Small Businesses Get More Time to Access Health Care Options & Compliance Issues
Good news— the employer mandate of the Affordable Care Act has been delayed for another year.
The government is taking more time to clarify how businesses must comply with new coverage requirements.
The Employer Mandate, originally set for January 1, 2014, required large employers to offer healthcare coverage to all full-time employees or pay penalties.
The delay means penalties for failing to provide coverage will not be enforced for another year.
Small businesses now have more time to determine how to manage costs and compliance.
For Facilities Managers, this means their Janitorial Service Providers are not required to offer healthcare coverage until January 1st, 2015.
It is also unlikely that healthcare cost increases will raise the price of janitorial services in the immediate term.
Why ObamaCare Is Proving to Be So Challenging For Businesses
The Affordable Care Act aims to expand insurance coverage and relies on multiple programs and regulations to achieve this.
To help lower-income individuals, Obamacare expanded Medicaid, created subsidies, offered small business health plan options, and required large employers to offer insurance or face fines.
The employer provisions have proven problematic.
Earlier delays already affected small business requirements, and now the mandate for large companies is postponed as well.
Many small to medium-sized businesses scrambled to determine whether they needed to comply with the requirement to insure all full-time employees.
Understanding the technical requirements and implementing the mandate has been overwhelming.
Businesses across the country raised concerns about the financial burden of offering coverage.
The mandate required tracking employee hours, evaluating cost strategies, and managing reporting systems.
Companies struggled with how to track employees with constantly changing schedules.
Some feared needing to replace full-time workers with part-timers to avoid reporting burdens and penalties.
As the deadline approached, business owners worried about how the mandate would impact operations.
So the one-year delay has been welcomed by many.
The full scope of the delay is still unclear, but formal guidance is expected soon.
Stathakis Is Working Hard to Keep Customers Informed & Minimize the Impact of Increased Costs
Stathakis is committed to keeping customers informed and minimizing any cost impacts associated with Obamacare.
Our management team has attended seminars, hired consultants, and worked with insurance professionals to understand the Affordable Healthcare Act.
Our biggest concern is clearly communicating to customers how they will be impacted , so they can prepare during annual budget planning.
Due to inconsistent information from the Federal Government, we did not feel confident providing cost projections for the 2014 budget cycle. For that reason, we are relieved the Act has been delayed another year.
We will continue to stay informed and share updates with customers and building services managers as new regulations unfold.
Outsourcing building maintenance remains a viable and cost-saving solution, especially with next year’s costs now clearer without immediate healthcare changes.
