Feds Delay ACA Employer Mandate for a Year
July 5, 2013
The Treasury Department announced Tuesday that the employer shared responsibility provisions of the Affordable Care Act (ACA), better known as Play or Pay, would be delayed until 2015. Along with the Play or Pay requirements, the federal government is also delaying the employer data reporting requirements for a year. Further guidance is expected to be released within the next week.
WHAT HAS BEEN DELAYED
The federal government has delayed until 2015 the penalties for not offering coverage to full-time employees and dependents, penalties for not offering affordable coverage or coverage meeting the 60% minimum economic value. There will be no employer Play or Pay penalties in 2014.
Because the Section 6055 information reporting requirements are also being delayed for a year, employers will not be required to self-report employer identifying information, whether the employer offers health coverage to full-time employees and dependents, the number of full-time employees for each month, the length of any waiting period, the monthly premium for lowest-cost option in each enrollment category, the employer’s share of cost of benefits, or the names and contact information of employees and months covered by employer’s health plan.
WHAT IS NOT CHANGING?
With the exception of the employer mandate and reporting reqirements, all other provisions of the ACA remain unchanged. Other ACA provisions still in effect or going into effect on schedule include:
- Review PCORI Fee Reporting and Payemnts Due 7/31/2013 and 7/31/2014
- Transitional Exchange Fee
- Health Insurance Industry Fee
- W-2 Reporting
- Individual Mandate
- Premium tax credits for Exchange coverage
- Removal of pre-existing conditions exclusions in 2014
- Notice of Exchange to employees
- Any other PPACA provision
WHAT STEPS SHOULD I TAKE?
Cottingham & Butler recommends that its clients pause briefly and wait for more definitive guidance to become available. Moving ahead to comply with provisions that will be delayed until 2015 earlier than required may not be wise until the nature and extent of federal guidance is known. As noted above, further guidance is anticipated by mid-July.
CONTACT US IF YOU HAVE QUESTIONS
We will continue to keep our clients informed as further information becomes available. If you have questions, please contact your Cottingham & Butler representative.
Tags: Employee Benefits