HHS Delays ACA’s Employer Mandate until 2015

On Tuesday, the White House announced that it would be delaying the employer mandate of the Affordable Care Act until January 2015. The rule, originally set to go into effect in 2014, would require all employers with at least 50 employees to offer health insurance to their workers.

Critics have said the rule will lead to employers reducing their workforce in an effort to avoid penalties or additional costs. The individual mandate, requiring almost everyone to be covered by insurance, is still scheduled to go into effect in 2014.

In announcing this decision, Senior Advisor Valerie Jarrett said, “We believe we need to give employers more time to comply with the new rules.” The change, she added, “allows employers the time to test the new reporting systems and make any necessary adaptations to their health benefits while staying the course toward making health coverage more affordable and accessible for their workers.”

The White House  also announced that the Administration will “re-vamp and simplify the reporting process” for businesses. The White House will issue regulatory guidance later this week.

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