Employer Mandate delayed until 2015

You still need to start preparing! 
 

The Obama administration caught many by surprise after announcing the one-year delay of the much anticipated employer mandate. This mandate requires employers with 50 or more full-time equivalent employees to provide health care coverage to their full-time employees (or those who work more than 30 hours per week). If employers fail to do so, they may face some hefty fines. 

The Obama administration has explained the reasoning behind the delay as to “provide more time for employers to adapt to health coverage and reporting systems while  moving toward making health coverage affordable and accessible for their employees. In simpler term, employers will not face penalties for at least another year, giving them time to decide whether they need to “Pay or Play.”

Despite the delay, it is important for employers to start preparing for Obamacare today. Employers will have to decide whether or not they will provide insurance for their full-time employees or pay the penalties associated with not providing insurance.  Before employers can reach this decision, there are several steps they need to take beforehand.

Scared? Don’t worry, we’ve got your back.

 

 

 

 

 

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What, How and When?

Whether you're an employee or an employer, Obamacare affects you!

  • Insurance

    Insurance

    Individuals must purchase insurance either privately or through an Exchange or face a penalty in 2014.

  • Individual Exchanges

    Individual Exchanges

    The state and federal governments will be opening health insurance Exchanges for individuals in 2013.

  • Employer Exchanges

    Employer Exchanges

    Employers may be able to buy insurance for their employees through Exchanges SHOPs in 2015.

  • Minimum Essential Benefits

    Minimum Essential Benefits

    Employer health care plans must provide 10 minimum essential benefits.

  • Affordability

    Affordability

    An employee's share in paying healthcare costs with an employer-provided health plan cannot cost an employee more than 9.5% of their annual income.

  • Penalties

    Penalties

    "Large" employers will be penalized if they don’t provide adequate health insurance to their employees.

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Save the Date

Obamacare was made law on March 23rd, 2010. Since then, many changes have been made to overhaul the health care system as a whole. The goal of Obamacare is to increase the number of Americans with health care coverage, streamline the delivery of health care services, and reduce the overall costs of health care for Americans.

The following are changes that have already taken place:

  • - Children can be covered under their parents insurance until 26.
  • - Medicaid was expanded in some states
  • - Pre-existing conditions banned
  • -  Preventative services must be covered.
  • - Small employer tax credits available

 

Here are the changes coming in the next couple of years:

  • - State health exchanges open to the public October 2013
  • - Employers must notify employees of these exchanges
  • - Individual Mandate begins Jan. 2013
  • - Employers with 50 or more FT employees must provide insurance
  • - Penalties are assessed for employers who do not provide insurance

Lookback Period Countdown

If you’re an employer and you haven’t already been managing your labor hours, you’ll need to make sure that you start now! You need to know whether you’ll be counted as a large or small employer for 2015. Every year, the IRS will be using the previous calendar year to determine how many full time employees or full time equivalents you have. However for 2015 only, you’ll be able to choose 6 consecutive months of 2014 to use as your lookback period. If you haven’t been managing your labor hours carefully, you’re going to need to be ready before July 1st 2014!

July 1st is 83 days ago

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Delay

Other Delays in Obamacare

In the news recently, it has been reported that key parts of the new health care law have been delayed. The most recent delays you should be aware of are the following:

The Employer Mandate Delay

The Employer Mandate was set to begin January 1, 2014, but has now been delayed to 2015. This mandate requires businesses with 50 or more full-time employees to provide health insurance. According to The Washington Post, after hearing numerous concerns from employers, the Obama administration decided to delay this provision.

Limit on Out-of-Pocket delay

The limit on out-of-pocket costs (including deductibles and co-payments) are not suppose to exceed $6,350 for an individual and $12,700 for a family. This limit has now been pushed back an entire year. These limits are set to begin in 2014.

Finalizing health plans delay

On October 1, 2013, health exchanges will open to the public, and individuals will be able to purchase health insurance plans. But, the Obama administration has now delayed the signing of final agreements with insurance plans to be sold on federal health insurance exchanges. Despite this delay, a spokeswoman for HHS says the exchanges will still open on October 1st as scheduled.

What now?

You’re going to want to know about individuals and Obamacare, employers and Obamacare, and all about the challenges that you may be facing. There are some great books coming out, like Obamacare: A Handbook For Employers, that you might be interested in checking out. This book is specifically designed for employers and gives them the information they need to navigate through the new health care law. There are also many websites out there that can help answer your questions, like http://healthcare.gov.

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