Health Care Reform Update: Employer Mandate Delayed for Medium Sized Employers Until 2016
The Department of Treasury announced on February 10th that businesses with 50 to 99 full time equivalent employees will not face a tax penalty under the Employer Mandate provision of the Affordable Care Act (ACA) for not providing health care coverage to their employees in 2015. According to one senior administration official, this postponement has been granted to allow medium sized employers “a little more time to adjust to providing coverage.” In addition, organizations with 100 or more full time equivalent employees will only need to provide health insurance to 70 percent of their full time employees in 2015 in order to comply with the Employer Mandate.
This recently amended phase-in of the Employer Mandate (also known as the “Play or Pay” requirements) will only impact the 2015 obligations. For 2016 and beyond, all businesses with 50 or more full time equivalent employees must provide health care coverage to at least 95 percent of their full time employees as originally envisioned in the ACA.
If you're an employer of 50-99 employees, how are you going to use the extended deadline to prepare for the ACA? If you have 100+ employees, are you ready for 2015?
- Reposted from HRAnswerlink