Affordable Care Act Employer Mandate Delayed for One Year

On July 2, The White House announced that they will be delaying the employer shared responsibility provisions, a key part of the Affordable Care Act (ACA). Before this announcement, businesses with more than 50 workers were required to provide affordable health insurance beginning in 2014, or face a financial penalty per employee. Now, employers will not face penalties if they do not provide health insurance in 2014.

The decision is intended give employers more time to comply with the new rules and to set up the communication infrastructure needed to comply with the law and properly assess penalties. At the same time, the Administration indicates that the new health insurance exchanges, or marketplaces, will still begin enrollment on time. For more information, see Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Engagement Valerie Jarrett’s blog post.