ACA Employer Mandate Delayed for Some Employers
Medium-sized and large employers are once again receiving a reprieve from one of the key elements of the ACA, the employer mandate to provide affordable, comprehensive health benefits to full time employees or pay a penalty. On Monday, February 10, 2014, the Treasury Department announced that employers with 50 to 99 FTEs will be given until the first day of their plan year beginning on or after January 1, 2016 (an additional year) to comply with the "Play or Pay" requirements of the Act.
For employers with 100 or more FTEs, the requirement is delayed but in stages. Rather than having to cover the previously required 95% of full time employees to remain compliant in 2015, larger employers will be required to offer coverage to at least 70% of their full time employees to avoid the penalty. The change does not affect the individual mandate that went into effect on January 1, 2014.
There will certainly be more details coming, so please stay tuned for the latest!
Posted on February 11, 2014 by Ben Cohen, CEBS, Practice Leader Health and Welfare Benefits