On July 2, 2013 the Obamacare Administration made known that the penalties scheduled to be enforced on employers by 2014 will be delayed for one more year. In addition, the deadline for Obamacare mandatory approvals has been postponed. The delay is in response to “interested parties” concerned with difficulties of the shared responsibilities between employers, the individual with no insurance, and the insurer in relation to the deadlines that had been established.
This delay provides many benefits:
First, it will allow time to investigate ways to simplify the reporting requirements that accompany the Obamacare statutes.
Second, it will allow time for employers and insurers to upgrade their health coverage and reporting systems.
Third, it will provide employers with more time to make heath care more affordable and obtainable for their employees as all employer requirements have now been pushed back to 2015.
Fourth, it will make compliance with other requirements under the ACA (Affordable Care Act) and annual reporting Acts 6055 (used by insurers and employers to track individual with self-insured plans) and 6056 (used by larger employers with track terms and conditions for those individuals insured with the employer) easier. These reporting requirements will be used to assess penalties under the employer and individual mandates and will be effective through 2014.
Fifth, the administration will be more flexible with other reporting requirements (such as when it took a 21-page application and shortened it to 3-pages so that it would be easier for all to complete and file).
Ultimately, employers are still encouraged to voluntarily extend converge to their employees and this delay will not affect the health care credits that have been offered to individuals who qualify for it. This is only a short-term delay for the individuals and small business employers involved. By the original mandate all would have had to comply with Obamacare by 2014, but now the “pay or play” deadline is 2015.
If you have any questions or concerns with “Pay or Play” and how it may affect your financials, please don’t hesitate to contact Lescault and Walderman at 1-866-496-2042.