Federal Government Announces another Delay for Employee Mandate
March 10, 2014 – On Feb. 10, 2014, the Treasury Department, in regulations outlining the Affordable Care Act, announced another delay to the employer health care mandate. Companies employing between 50 and 99 full-time workers will now have to comply with the mandate to offer employees affordable health insurance in 2016, a delay of an additional year.
Larger companies with 100 workers or more have been extended transition relief and can avoid financial penalties of up to $3,000 per worker by offering insurance to 70 percent of full-time workers in 2015, a reduction from the previous 95 percent coverage requirement. The requirement moves back to 95 percent in 2016.
The amended rules provide large employers far more flexibility than allowed by the original language of the health law. Companies that have 100 or more full-time workers, defined as employees who work more than 30 hours per week, still will have to begin complying with the mandate to offer such coverage in 2015 or face financial penalties of up to $3,000 per worker. However, by pushing the 95 percent requirement back to 2016, many large businesses will have more time to ramp up coverage.
For additional information about these changes to the Affordable Care Act or questions about Employee Benefits services that can help your company gain compliance, contact IBTX Risk Services at 800.880.6689 or Email us at firstname.lastname@example.org.