By Elizabeth Bradley, Kara M. Maciel & Adam Solander
In breaking news, the Obama Administration has acknowledged the significant regulatory burdens that the Affordable Care Act’s January 1, 2014 deadline would place on employers. Specifically, the Administration announced that in view of the complexity of the rules and reporting requirements, it is postponing for one year, until at least 2015, the requirement that businesses cover their workers under Obamacare (i.e., there will be no penalties the first year on businesses that do not cover workers). The move does not affect the individual mandate and it does not affect the establishment of the Exchanges.
The Treasury Department, which enforces the law, said in its own blog post:
“The Administration is announcing that it will provide an additional year before the ACA (Affordable Care Act) mandatory employer and insurer reporting requirements begin. This is designed to meet two goals. First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law. Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.”
We understand that regulatory guidance will be forthcoming this week, and we will provide updates as soon as information becomes available. Stay tuned to EBG’s blogs and www.ebglaw.com for more breaking news about the ACA.