Large Employers Rejoice! PPACA’s Employer Mandate Delayed until 2015
On July 2, 2013, the Obama administration declared that it was delaying the effective date of the Patient Protection and Affordable Care Act’s Employer Mandate until January 1, 2015. The Employer Mandate, which was scheduled to become effective on January 1, 2014, required all large employers to offer health care coverage to their full-time employees or pay a penalty. Most importantly, this delay means that the penalties to large employers for failure to provide health insurance coverage will not be enforced for another year. You may read the full statement issued by the U.S. Department of Treasury here.
In the past several months, employers have been scrambling to understand the technical requirements of the law and prepare a strategy for implementing its mandate. They have voiced serious concerns about the Employer Mandate’s effect on their businesses, in particular, the financial burden they would face by offering coverage to their full time employees. Compliance with the new law has required tracking employee hours, evaluating strategies to cut costs and adopting systems to document data, all of which must be addressed as the deadline has drawn closer. Therefore, the delay of the Employer Mandate is a welcome relief. The scope of such relief remains to be seen, but formal guidance related to the delay is expected within the next week.
The latest announcement does not impact the Individual Mandate, which generally requires all individuals to maintain health insurance as of January 1, 2014 or be charged a penalty. The uninsured will still be able to acquire health insurance through private means or through the health insurance marketplaces (exchanges), whose open enrollment period is scheduled to begin on October 1, 2013.
Foster Swift is committed to follow the ever-changing developments of this law. If you have any questions, please direct them to a member of our Health Care Reform Team:
- Mindi Johnson (616) 726-2252 - Grand Rapids
- Joshua Wease (616) 726-2215 - Grand Rapids
- Lauren Dunn (517) 371-8324 - Lansing
With a business-minded approach, and service-oriented delivery, Mindi helps clients navigate challenges and solve problems in the areas of employee benefits law and health care law. Mindi has spoken and written extensively on employee benefits, health care reform, and health care law topics, and is actively involved in a number of legal, professional and industry organizations focused on these issues.View All Posts by Author ›
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Best Lawyers® 2021
Congratulations to the attorneys of the Health Care practice group at Foster Swift Collins & Smith, PC for their inclusion in the Best Lawyers in America 2021 edition. Firm-wide, 44 lawyers were listed. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation and as lawyers are not required or allowed to pay a fee to be listed; inclusion in Best Lawyers is considered a singular honor. Health Care practice group members listed in Best Lawyers are as follows:
- Gilbert M. Frimet, Southfield
- Richard C. Kraus, Lansing
- Gary J. McRay, Lansing
- Jennifer B. Van Regenmorter, Holland
To see the full list of Foster Swift attorneys listed in Best Lawyers 2021, click here.