As of early July, the Obama administration delayed an essential requirement of the Affordable Care Act—the employer mandate.
What is the mandate?
The employer mandate penalizes larger businesses (50 plus employees that work 30 plus hours) that fail to provide health insurance coverage to its employees. The mandate was set to be take effect this coming January 1 but is now pushed back to 2015.
Why did the Obama administration delay this mandate?
According to President Obama’s Senior Adviser, Valerie B. Jarrett, this health insurance mandate delay is in response to the concerns of affected business. In the interim, the Obama Administration will attempt to address these concerns.
- Problem: “…the reporting called for under the law about each worker’s access to and enrollment in health insurance requires new data collection systems and coordination.”
- Solution: The Obama hope to modify and simplify the reporting process.
- Problem: Most affected businesses felt there wasn’t sufficient time to comply with the new rules.
- Solution: The delay provides employers more time to comply with the new rules. In the interim, employers will be able to analyze their finances to determine how they will implement the new rules.
How does this affect New Jersey businesses?
Although 96 percent of businesses do not meet the 50 plus employee requirement, 4% would be affected. Many of these businesses are chain restaurants, retail stores, and home health companies who simply can’t afford a 2,000 dollar penalty per employee who gets subsidies. In the interim, businesses are encouraged to ask themselves, is it feasible? If not, how can they turn the impossible to reality? Would they have to lay off employees and decrease wages?
Be proactive and take charge. It’s essential for New Jersey businesses to use this time wisely to update their health insurance coverage to satisfy the mandate’s requirements.
At Vreeland Insurance, we place a high priority upon getting you the group health/life insurance protection you need to cover your employees. Sure, you can try going without…but the price you pay in the long run could well be much in excess of what you’d pay in premiums now. And we’re very good at helping you keep your monthly costs low and affordable.
Call us today to speak with our New Jersey group health and life insurance specialists.