On July 2, 2013, the Department of Treasury announced that the employer mandate requirements of the Affordable Care Act (ACA) will be delayed for one year, until January 1, 2015. The decision came after several complaints from the employer community regarding the complications, confusion and lack of understandable guidance surrounding compliance with the provision. The employer mandate requires that large employers, as defined by the ACA, either provide health coverage for its full-time employees and equivalents or pay a penalty. Implementation was to begin January 1, 2014.
AGC is a member and active participant of Employers for Flexibility in Healthcare, a coalition of organizations that represent employers affected by ACA. The primary purpose of the group is to ensure that employer-sponsored health coverage remains a competitive option for the members of each organization. Transition relief from the employer mandate is a top priority of the coalition.
The transition relief provided by the Treasury Department delays the requirement for employers to report information of the health coverage offered to workers, as well as any shared responsibility payments required of employers. The delay of the employer mandate does not affect any other components of the ACA at this time.
AGC will continue to work with legislators and regulators to make ACA implementation less costly and less complex for its members. In the meantime, covered employers are encouraged to continue efforts to comply with the requirements of the Act as if the effective date had not changed. By doing so, an employer may evaluate the effect of the law on a company using real-life examples without the fear of being penalized for mistakes.
For more information, visit AGC’s dedicated ACA-resources webpage at www.agc.org/healthcarereform.
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